Regional Pay

Debate between Rachel Reeves and Mike Freer

Wednesday 20th June 2012 Commons Chamber

[Rachel Reeves]

I am sure that the 11,500 public sector workers in the hon. Lady’s constituency will know that she is sticking up for them.

[Mike Freer (Finchley and Golders Green) (Con)]

If the Opposition are so vehemently opposed to regional pay, will the hon. Lady be instructing Labour London MPs to give up their London weighting?

[Rachel Reeves]

I will come to the regional flexibility that is already in the system in inner and outer London for teachers and those in the health service. The point is that it is not necessary to dismantle the national system in this way to get the flexibility that we need.

We can imagine the impact that these changes might have on regional economies. If the north-east had a further year’s pay freeze imposed on it next year and the 1% increase that the Chancellor has announced was concentrated in more favoured areas, it would deprive the region’s economy of £78 million a year. If the same happened in other regions, Wales would lose £97 million a year, Yorkshire and the Humber £130 million, the south-west £140 million, as I said before, and Scotland £162 million.

Does the Minister really think that this policy will contribute to economic rebalancing? Is it really the best that the Government can come up with? Their only policy for jobs is to make it easier to fire people and their only policy for the regions is to cut the pay of public sector workers. It is no wonder that we are back in recession. It would be laughable if it was not so depressing.

There is no credible evidence to support the claim that the difficulties faced by the private sector are the result of national pay frameworks in the public sector.