Tuesday, August 29, 2006
New Labour: tough on pay

‘This year, to fight inflationary pressures, we have ensured that public sector pay awards have averaged 2.5 per cent, the lowest for a decade. For the coming year, I have told every department to go further and found all pay settlements on achieving our 2 per cent inflation target.
‘Toughness on pay is just part of a public sector reform programme, to release resources for national priorities, that also includes an 80,000 reduction in the civil service, £30bn ($15.8bn) of asset sales by 2010 and more stretching efficiency targets.’
There will also be beneficiaries, too:
‘Our reforms have allowed us to cut corporation tax from 33p to 30p in the pound and long-term capital gains tax from 40p to 10p, changes that we could afford and sustain.’
Remind me again. Which party is in office these days?