Magazine article Public Finance

Chancellor Seeks Views on Local Pay

Magazine article Public Finance

Chancellor Seeks Views on Local Pay

Article excerpt

Public sector pay could be set locally by 2013/14, under plans announced by Chancellor George Osborne.

The chancellor wrote to the heads of all the public sector Pay Review Bodies in December to ask for their views on the proposed change, which he said would ensure that 'public sector pay does not distort local markets'. A similar change is being considered for the civil service.

In his letter, Osborne said there was 'substantial evidence' that the differential between public and private sector pay varied 'considerably' between local labour markets.

Osborne told the Commons' Treasury Committee that the change was a 'significant reform that could help the public sector and private sector recruit and retain staff. The review bodies have been asked to take into account the need to 'recruit, retain and motivate suitably able staff in the public sector*, he added.

The chancellor cited the previous Labour government's 'experiment/ of setting pay locally for court staff. …

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