The Press and Journal (Inverness, Highlands, and Islands)
May wins vote test amid ‘pay cap shambles’
Politics: No concession over wages
Labour has accused the government of a “shambles” over public sector pay, amid confusion over the future of the 1% cap on annual rises.
Hopes were raised that the long-standing cap was set to be scrapped, after a senior Number 10 source briefed reporters that Prime Minister Theresa May accepted voters were “weary” of austerity and was ready to listen to recommendations from the independent bodies that review public sector pay.
Decisions would come in Chancellor Philip Hammond’s Budget in the autumn, he indicated.
And Defence Secretary Sir Michael Fallon became the latest in a string of ministers to suggest that the government will have to consider whether to persist with the cap, which is currently due to remain in place until 2019-20.
But the PM’s official spokesman later played down suggestions that a review of the cap was in the offing, insisting that “the policy has not changed”.
Health Secretary Jeremy Hunt said the government would make a final decision after a report by the pay review body.
“What I can say is that we will not make our decision on public sector pay until the pay review body has reported, and we will listen to what they say and we will listen to what people in this House have said before making a final decision,” he said.
Despite the confusion, the government saw off a Labour challenge that demanded an end to public sector pay restraint, which has significantly reduced the value of wage packets since 2010 due to a twoyear freeze, followed by years of 1% caps on annual rises. In the first parliamentary test of Mrs May’s mi- nority government, Conservatives backed by the DUP defeated the opposition amendment to the Queen’s Speech by 323 votes to 309.
But shadow chancellor John McDonnell said the confusion surrounding the government’s intentions over pay reflected a “war” between 10 Downing Street and the Treasury on the issue. “This war between Number 10 and the Treasury isn’t sustainable. Shambles,” he said.
Liberal Democrat Leader Tim Farron said: “The Tories are in utter chaos. They have U-turned on their own U-turn within the space of a few hours. This is not strong and stable, it is a government that is spinning out of control. The Treasury can find £1billion for the DUP so Theresa May can cling on to power, but can’t find the cash to properly pay our teachers, nurses and police.”
Labour leader Jeremy Corbyn said: “The Conservatives clearly plan to keep working for a privileged few.”
“They have U-turned on their own U-turn within hours”