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

Contact Centre Advisor

The Royal Borough of Windsor & Maidenhead
£23,706 - £25,306 per annum
We have an exciting opportunity for a Contact Centre Advisor to join us! Maidenhead, Berkshire
Recuriter: The Royal Borough of Windsor & Maidenhead

Sales and Donations Assistant

Mansfield District Council
£8,287.46 - £8,428.86 per annum
As a Sales and Donations Assistant you will be the first point of contact Mansfield, Nottinghamshire
Recuriter: Mansfield District Council

Corporate Health & Safety Advisor

Ashfield District Council
£32,061 - £34,434 per annum
The Corporate Health and Safety Team are seeking a highly motivated health and safety practitioner Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council

Project Design Co-ordinator

Ashfield District Council
£35,412 - £38,220 per annum
Working within the Planned, Cyclical & Estates Maintenance Section Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council

Housing Assistant

Ashfield District Council
£25,583 - £25,989 per annum
We have an excellent opportunity for an enthusiastic and motivated candidate to join our Lettings Team as a Housing Assistant. Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council
Linkedin Banner