Thomas Bridge 29 October 2012

Academics condemn regional pay proposals

Regional pay proposals would heighten geographical inequalities and cause nationwide economic damage, leading academics have warned.

In a letter published in The Times, 60 academics have warned that government plans to end national pay bargaining would reduce consumer spending power and undermine businesses in less prosperous areas of the UK.

In the letter, the academics state there is ‘no convincing evidence’ to support chancellor George Osborne’s claims that regionally determined pay would boost the economic performance of local economies.

Such a policy could ‘aggravate geographical economic and social inequalities, the letter claims.

Calling on the Government to instead reinforce provincial growth, the letter urges ministers to avoid policies which would ‘undermine regional economic and social development’.

The signatories include professor of politics at Northumbria University Keith Shaw, John Tomaney professor of urban and regional planning at University College London, and Richard Hyman, professor emeritus in industrial relations at the London School of Economics.

Shaw said: ‘This proposal will depress public sector pay in regions outside of London and the South East and, in areas such as the North East, could lead to a spiral of decline that would serve to further widen the ever-growing north-south divide.’

Tomaney added: ‘I have serious concerns that the full impact of what has been discussed in terms of regional or local public sector pay has not been appreciated by the Government. Reducing wages and spending power in the poorest regions can only widen divisions and harm any economic recovery.’

Responding to the letter, Trade Union Congress (TUC) general secretary Brendan Barber said: ‘This is yet more evidence that the Government’s plans for regional or local pay are not just unfair, but ill-thought out. The chancellor should take the views of these many academic experts seriously and put a stop for once and for all to these flawed and counterproductive proposals.’

SIGN UP
For your free daily news bulletin
Highways jobs

Ugobus Driver - Chelmsford

Essex County Council
Up to £25959.0000 per annum
Ugobus Driver - ChelmsfordPermanent, Part TimeUp to £25,959 per annum (full time equivalent)Location
Recuriter: Essex County Council

Transport Coordinator

Essex County Council
£37614.0000 - £44251.0000 per annum
Transport CoordinatorPermanent, Full Time£37,614 to £44,251 per annumLocation
Recuriter: Essex County Council

Team Administrator

Gloucestershire County Council
£25,185 - £25 989
Are you looking to join a friendly and supportive administration team at Gloucestershire County Council? Gloucester, Gloucestershire
Recuriter: Gloucestershire County Council

Administration Officer

Durham County Council
Grade 5 £26,403 - £28,598 (Pay award pending)
Are you an organised and proactive administrator who is passionate about supporting learners to achieve their potential? Join DurhamLearn and become Durham
Recuriter: Durham County Council

Highways Trainer (2 Posts)

Derbyshire County Council
£35,422 - £38,730
Are you passionate about developing people and ensuring compliance across a complex operational service? Derbyshire
Recuriter: Derbyshire County Council
Linkedin Banner