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Brown Calls For Public Sector Pay Freeze

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http://politics.guardian.co.uk/publicservi...1791100,00.html

Brown calls for public sector pay freeze [ Tuesday June 6, 2006 ] Larry Elliott, economics editor

Chancellor says two more years of low settlements are necessary

Gordon Brown last night put the government on a collision course with millions of public sector workers when he called for a three-year pay freeze as part of the fight to control inflation and cut the budget deficit.

In a speech designed to show he would not slacken the pace of New Labour reform as the likely successor to Tony Blair, the chancellor insisted this year's 2.25% pay deals would be the start of a prolonged period of belt-tightening.

Mr Brown showed he was willing to risk antagonising the unions in an attempt to position himself for the political struggle with David Cameron. Aware that the Conservatives are seeking to depict him as a "roadblock to reform", he urged the break-up of national pay bargaining, supported the case for replacing Britain's nuclear power stations, called for a "quicker, more flexible and more responsive" planning system and held out the prospect that he would bow to demands from business for lower corporate taxation.

The chancellor told the CBI, the employers' organisation: "On pay, we must do more to encourage local and regional pay flexibility. And with this year's public sector pay settlements averaging just 2.25% we are maintaining vigilance in the fight against inflation - and next year and the year after that we will maintain this discipline of low overall settlements."

A spokeswoman for Britain's biggest union, Unison, said: "Any attempt to artificially keep down pay in the public sector will only lead to bad feeling as workers see pay in the private sector overtaking them year on year."

The comments come ahead of a speech today by Tony Blair in which he will warn frontline staff in London that public services will have to become "radically better" to justify increased investment.

The prime minister will re-enter the fray over his contentious health and education reforms by insisting that the public will lose faith in the government's ability to improve services unless they see changes, including increased involvement by the voluntary and private sectors.

Mr Brown said last night: "We will continue to reform our public services: matching national objectives with other drivers of change - competition and contestability and local choice and voice, including publicly available real-time data across the key public services."

Relations between the government and business have cooled over the past couple of years but Mr Brown told the CBI: "On tax, just as we have cut long-term capital gains tax, corporation tax and small business tax, we will continue to to look with you at the business tax regime."

Treasury sources said Mr Brown was sending out a message to the pay review bodies that come up with pay awards for 40% of Britain's public sector workers. After the big increases in public spending in the first half of this decade, the government is seeking to rein in the public sector wage bill. With inflation expected to remain steady at 2% for two years, the public sector would be seeing virtually no increase in real take-home pay.

Mr Brown also told the CBI that it was important for Britain not to be complacent as it faced the challenge of globalisation. "What we must now do is win the argument that is raging throughout the world - whether it be up against economic patriotism in Europe or populism in Latin America - showing that embracing globalisation, not retreating into protectionism is the best way to growth, jobs and prosperity."

-----------------------

I didn't know there was any inflation? :blink:

HD

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http://politics.guardian.co.uk/publicservi...1791100,00.html

Gordon Brown last night put the government on a collision course with millions of public sector workers when he called for a three-year pay freeze as part of the fight to control inflation and cut the budget deficit.

In a speech designed to show he would not slacken the pace of New Labour reform as the likely successor to Tony Blair, the chancellor insisted this year's 2.25% pay deals would be the start of a prolonged period of belt-tightening.

HD

I think Brown is losing the plot - he has told so many lies he is now believing them himself

If he thinks the Public Sector workers will accept a pay freeze for 3 years - he's having a laugh, they refused to accept the inevitable only months ago that they would have to work until 65 because there would be no money to pay them their pension - he caved in on that one (he'll have retired by then so won't have to face the music) - do you really think he can persuade them to accept no wage rise?

Read between the lines Brown knows he's kn*ckered

(God I hate Gordon Brown)

CS

Edited by Cornwall Sceptic

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Guest Bart of Darkness
I didn't know there was any inflation?

Me neither. :)

in a speech designed to show he would not slacken the pace of New Labour reform as the likely successor to Tony Blair, the chancellor insisted this year's 2.25% pay deals would be the start of a prolonged period of belt-tightening.

If inflation is supposed to be 2%, doesn't 2.25% represent a pay rise of 12.5% over and above the cost of living? Not a freeze.

(God I love messing about with figures.)

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Read between the lines Brown knows he's kn*ckered

CS

Yes, it does seem a tad defensive. He's on the back foot on a sticky wicket. And the Scots are even worse at cricket than the English.

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Provided their pay rises by more than 1.8% they'll be fine wont they, as we have no real inflationary pressures. In actual fact they'll be able to buy more yogurt and DVD players than ever. Brown is stuck in the 70's, I do like the way he has decided to apply wage controls to the most unionised part of the workforce, always a good move.

Mind you, Cameron seems pretty adept at making an ar$e of himself :-

"Over half a million working days were lost in the public sector through industrial action in the first three months of this year alone, compared to just 20,000 in the private sector, representing 96% of the total.
Today's figures were released ahead of a speech tomorrow by Conservative leader David Cameron, who will tell a consumer summit that the private sector has lessons to learn from public sector colleagues."

Indeed they do! :lol:

Edited by BuyingBear

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I think Brown is losing the plot - he has told so many lies he is now believing them himself

If Chancellor von Braun really believes there is no inflation why did he instruct the pay body to authorise a 13% pay rise to striking lecturers? Look at what politicians do, not what they say.

Maybe the private sector needs to cut back on its private helath plans

That wouldn't be fair, many unionised NHS employees enjoy private medical cover.

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isn't this meant to be a friendly message to merv et al at the mpc.

"look, i'm doing something about this nasty inflation stuff ..please, please, please DON'T RAISE THE BASE RATE"

ellenmyfanwy

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Freezing wages is all well and good if he can find a way to freeze living costs too. Sometimes I struggle to understand why everyone is so focused on the shortcomings of the likes of Blair and Prescott when we have a chancellor that operates the way Brown does. I can honestly say that if I found myself down a dark alley with Blair, Brown and Prescott, and I had a gun with three bullets in it, that all three bullets would be going straight into Brown.

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Freezing wages is all well and good if he can find a way to freeze living costs too. Sometimes I struggle to understand why everyone is so focused on the shortcomings of the likes of Blair and Prescott when we have a chancellor that operates the way Brown does. I can honestly say that if I found myself down a dark alley with Blair, Brown and Prescott, and I had a gun with three bullets in it, that all three bullets would be going straight into Brown.

Into Brown's corpse you mean.

Psycho-Blair would have beaten you to it (dressed in one of mother's dresses no doubt - or perhaps Cherie's gown and wig?)

btp

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They will accept a pay freeze like they will accept working to 65 ... and we know how that went :(

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Well i work for the public sector, and i cant see anyone standing for this. Like someone else said earlier in the thread, it would be fine if inflation and cost of living is going to be held in check, but we all know that its not. These are supposed to be key workers in the government: the ones who put the fires out, the ones who scrub your **** in hospital, the ones who sort out your benefits if you lose your job, and NuLab seem intent on riling them up the wrong way. We are already paid less than private sector. Its almost like they are trying to create an "underclass" who simply work slave like and cannot afford to buy, so have to rent from the fat cats above. It screams to me that i should get out now and find something else, but frankly i think my job is one of the safest in the land. Despite the laughable pay, i would rather have a job than no job at all.

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Guest Riser

Bad day for Brown in the press Today:

Front page of the Express - TAX MANIAC Browns 140 ways to hammer Bitain

express.gif

Independant Comment

Steve Richards: Gordon Brown cannot afford to wait much longer. He must make his move this autumn

Soon it will be too late. Voters will decide it is time for a change and opt for that nice chap on the bike

Published: 06 June 2006

In the current febrile political situation, party leaders and aspiring leaders act on the basis of two assumptions. The first is that Gordon Brown will succeed Tony Blair. The second is that Mr Brown will never make an overt bid for the leadership while Mr Blair is in place.

Every now and again the first assumption is tested. An alternative candidate to Mr Brown surfaces and is deified fleetingly by ultra-Blairites. Currently, the new Education Secretary, Alan Johnson, plays the fateful role. I suspect Mr Johnson seeks a modest greatness, but is having a more overwhelming greatness thrust upon him.....................

Edited by Riser

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The comments come ahead of a speech today by Tony Blair in which he will warn frontline staff in London that public services will have to become "radically better" to justify increased investment.

Bit of a thought disconnect here - improve services and receive investment as a reward? Surely it should be invest in services and receive improvement as a reward?

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Brown's policies (hiring too many in the public sector)

helped to touch off this inflation.

Now he wants his little public sector sheepies to suffer

Interesting conclusion. Most people have the opinion that either record public-sector hiring was to keep unemployment artificially low or so that no-one would dare vote them out as the Tories would cull most of them if they ever got back in.

Now it seems that another interpretation is that he wanted to be able to manipulate wages en masse. And I suppose it all falls under the general theme of proleteriat control...

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The inflation measure is a seroius crime on the british people.

It vastly rewards those who borrow by transferring hardwon wealth to them.

It can easily be shown that the inflation measure is a horrific work of fiction.

Even if nothing else had risen in price, just the rises in utilities mean inflation is well above 3% for a average earner, and over 5% for a minimum wage earner.

Thats not to count council taxes, rising food prices and houseprices/rents.

The de-unionised private sector worker is undercut with mass immigration used as a way of keeping wages down, and a crony class raising property prices with his taxes (via tax breaks).

However the highly unionised and expanded public sector would soon make mincemeat out of this 2.25% pay rise measure, even with a private sector recession, as real inflation is over 4% JUST IN ESSENTIAL SPENDING.

However, the funding of the current poltical system, as the recent article on David Cameron's leadership race has illustrated, is from hedge funds and property interests - the very people who this fiction of a inflation measure, is making vastly rich.

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A pay freeze will not thwart the public sector employees.

As we have seen in the past two years, GPs have renegotiated their contracts and are now making money like bandits. Another little wheeze employed by councils is to invent new job titles at higher salaries.

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Well i work for the public sector, and i cant see anyone standing for this. Like someone else said earlier in the thread, it would be fine if inflation and cost of living is going to be held in check, but we all know that its not. These are supposed to be key workers in the government: the ones who put the fires out, the ones who scrub your **** in hospital, the ones who sort out your benefits if you lose your job, and NuLab seem intent on riling them up the wrong way. We are already paid less than private sector. Its almost like they are trying to create an "underclass" who simply work slave like and cannot afford to buy, so have to rent from the fat cats above. It screams to me that i should get out now and find something else, but frankly i think my job is one of the safest in the land. Despite the laughable pay, i would rather have a job than no job at all.

There speaks a true public servant. No hope, no ambition - just turn up (some days) and do as little as possible for the money. And we have 5 million of you lot to support.

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There speaks a true public servant. No hope, no ambition - just turn up (some days) and do as little as possible for the money. And we have 5 million of you lot to support.

LOL , someone had to say it.

:D

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There speaks a true public servant. No hope, no ambition - just turn up (some days) and do as little as possible for the money. And we have 5 million of you lot to support.

I am sorry that I have to disagree with you on this Marina. I would not tarnish all Public Sector workers like that. I have had an opportunity to work with PS workers on short term contract and noticed few them are working hard. But most of them are taking advantage of the situation of "no responsibilty". I would like to know anybody who can point me to the ast time a PS worker scaked for any reason ?

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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