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

Senior Social Worker

Gloucestershire County Council
£41,771 - £47,181 per annum pro rata
Are you a Social Worker passionate about working with people to promote independence Gloucestershire
Recuriter: Gloucestershire County Council

Logistic Assistant

Gloucestershire County Council
£26,403 - £27,694 per annum
We are seeking a logistic assistant to come and join our team! Gloucestershire
Recuriter: Gloucestershire County Council

Director of Assets, Environment and Economy

Nottinghamshire County Council
Up to £109,000
At Nottinghamshire County Council, we’re more than an organisation, we’re a community, inside and out. Nottinghamshire
Recuriter: Nottinghamshire County Council

Adults Social Worker - South Essex (Expression of Interest)

Essex County Council
£36124.0000 - £51834.0000 per annum + Flexible Working, Hybrid
Register your interest here to be notified of upcoming Social Worker opportunities within Essex County Council's Adult Social Care services in South England, Essex, Basildon
Recuriter: Essex County Council

Duty Manager

Durham County Council
Grade 6 £28,142 - £31,022 pro rata to hours worked
Help launch County Durham’s newest cultural landmark! Opening in August, The Light will bring together art, science, history, creativity and communit Durham
Recuriter: Durham County Council
Linkedin Banner