Prime Minister: Trade Unions

Lord Fox Excerpts

Monday 19th December 2022 Lords Chamber

[Lord Callanan (Con)]

It will not surprise the noble Lord to know that I do not agree with him. The reason we have independent pay review bodies is to try to take the politics out of these settlements. The Government have said that we will accept those recommendations in full. Frankly, some of the increases that are being asked for are unaffordable.

[Lord Fox (LD)]

My Lords, over the weekend several senior government spokespeople have justified not increasing the offer on public sector pay because it would fuel inflation. I believe that the Minister here is more economically literate than those spokesmen, because he knows well that public sector pay does not fuel inflation, neither is it driving private sector pay—you have only to look at the discontinuity now. Will the Minister please disabuse his colleagues of this specious argument? Will he urge them to sit down with the nurses and settle this dispute?

[Lord Callanan (Con)]

Of course we want to see the action ended and the dispute brought to an end, but it remains the case that, if above-inflation pay rises are accepted, that will mean less money for the services that everybody wants to see expanded. There is a limited pot of money that can go only so far.