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

Communication Support Worker

Durham County Council
£33,673 - £37,563 pro rata
Required – Temporary, grade 8, term time only plus 2 weeks.  8 hours per week until 31 August 2027. Are you looking or a role in school supporting th Durham
Recuriter: Durham County Council

Outreach Workers

Durham County Council
Grade 6 £29,071 - £32,046
We are looking for enthusiastic and committed practitioners to join our Family Hub Teams supporting children and Families to deliver services in comm Peterlee
Recuriter: Durham County Council

School Admin Officer

Durham County Council
£26,403 - £28,598 pro rata (pay award pending)
Required to work term time only plus 2 weeks during summer holidays. 8am-4pm. Wingate Nursery School is looking for an exceptionally organised, warm, Wingate
Recuriter: Durham County Council

Cleaner

Durham County Council
£24,796 pro rata (pay award pending)
Required to work 12 hours per week, 05.30-08.00 or 15.30-18.00 Monday-Friday, Term Time plus 3 weeks to be worked during school holidays. We are seek Durham
Recuriter: Durham County Council

Kinship Supervising Social Worker

Essex County Council
£38478.0000 - £51834.0000 per annum
. England, Essex, Chelmsford
Recuriter: Essex County Council
Linkedin Banner