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

Garage Officer - Harlow Council

Essex County Council
Up to £16.8100 per hour
Garage Officer - Harlow Council Location, HarlowFull time, Temporary - 37.5 hours per week 6 Months Contract* £16.81 PAYE / £21.02 Umbrella Closing Da England, Essex
Recuriter: Essex County Council

Highways Adoption Engineer

Durham County Council
Grade 8 ( £32,597 - £36,363) Grade 9 (£35,412 - £39,152) Grade 10 (£38,220 - £41,771)
We are seeking to recruit a Highways Adoption Engineer (Career Graded). Your primary role will be to ensure that all new roads built within the County Durham
Recuriter: Durham County Council

Highways Assets Technical Officer

Durham County Council
£35,412 - £39,152
We are seeking to recruit a Highway Assets Technical Officer whose primary responsibility will be to ensure that Highways Asset Management is delivere Durham
Recuriter: Durham County Council

Contracts Administrator

Durham County Council
Grade 5 £26,403 - £28,598
A vacancy has arisen within Business Services for a full-time Contracts Assistant. This is initially temporary for 18 months. This is an exciting opp Durham
Recuriter: Durham County Council

Homelessness Prevention and Solutions Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£38,976 to £47,229 per annum
We are looking for a capable and ambitious individual keen to help families and individuals facing homelessness to help support them in their homelessness journey and adhere to legislative guidance as well as policy and procedures. Who are we looking fo Twickenham
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth
Linkedin Banner