George Osborne has just fired the first shot in the fight over the 2012 Budget. His decision to introduce local pay for the 160,000 civil servants coming off the public sector pay freeze is, as is often the case with Chancellor Osborne, both an economic and a political move. The economic case for local pay is straightforward. National pay rates mean that public sector workers are relatively underpaid in prosperous areas of the country and relatively overpaid in deprived areas.
As top public sector pay packages are published, worth recalling what the now Chancellor, George Osborne had to say on the subject at the last Conservative conference. "In the current climate, anyone who wishes to pay a public serva... Read Post
Today may turn out to be the day when the most significant economic decisions of the year are taken. This is the day when the chancellor and a small team of senior civil servants and political advisers gather at his country retreat ... Read Post
The Daily Mirror has today splashed on the fact that Rupert Harrison, chief economic adviser to the British government, has had a pay increase and is now on £95,000. Outrageous,… Continue reading The post Why is George Osborne’s aid... Read Post