Raising spending is selfish says Cameron
David Cameron entered the Cabinet row over public sector pay by attacking “selfish” politicians who spend taxpayers’ money to make themselves appear “generous”. The former prime minister’s intervention will be seen as a rebuke to senior Conservative ministers including Boris Johnson and Michael Gove, who have advocated the easing of the 1 per cent cap on pay rises for public sector workers. Mr Cameron appeared to be backing Philip Hammond, the Chancellor, who is determined not to borrow more money to fund pay rises.
‘Giving up sound finances isn’t being generous, it’s selfish: spending money you may need tomorrow’
DAVID CAMERON has waded into the Cabinet row over public sector pay by attacking “selfish” politicians who spend taxpayers’ money to make themselves appear “generous and compassionate”.
The former prime minister said it was too soon “to let spending and borrowing rip” because of the danger of future economic shocks.
His intervention will be seen as a slap in the face for senior Tories including Boris Johnson, Michael Gove, Jeremy Hunt and Sir Michael Fallon, who have advocated the easing of the one per cent cap on pay rises for public sector workers.
It came as Lord Lawson, the former chancellor, warned of the dangers of allowing politics to override sound economic policy and said it was “ludicrous” for ministers to be undermining the Government’s austerity policy in public.
The Cabinet is in agreement that money must be found to give public sector workers more than the one per cent overall rise they are currently entitled to, but there is discord over how a better pay deal should be funded.
Mr Cameron appeared to be backing Philip Hammond, the Chancellor, who is determined not to borrow more money to fund pay rises. Speaking at the Asia Leadership Conference in Seoul, South Korea, Mr Cameron said: “The opponents of so called austerity couch their arguments in a way that make them sound generous and compassionate. They seek to paint the supporters of sound finances as selfish, or uncaring. The exact reverse is true.
“Giving up on sound finances isn’t being generous, it’s being selfish: spending money today that you may need tomorrow.”
Mr Cameron, who presided over a two-year public sector pay freeze before the introduction of the one per cent cap in 2012, spoke up after a string of Thatcher-era former ministers derided the Government for failing to make the case for its sound economic principles during the election campaign.
Lord Lawson, who was chancellor from 1983 to 1989, told the BBC that while tax rises and financial discipline are not popular, people understand that “absolutely firm control” of public spending is necessary.
He said: “The politics is always difficult. It’s not easy to pursue financial discipline. Neither are tax rises popular. But it’s necessary. I think people understand we need to pay our way and that is the road to economic success.”
Lord Lawson said that if the Government decided it had to raise taxes to pay for a public sector pay round, it should consider putting up fuel duty.
He said: “If you decide you’ve got to do something on the tax front I myself would look at the fuel duties which are very substantial … but have been frozen for about six or seven years.”