Dated: 10 March 2010
Commenting on the Prime Minister’s announcement today that the pay of Senior Public Figures will be frozen for a year, Graeme Leach IoD Director of Policy and Chief Economist said:
“With public finances in such a poor state we welcome steps to restrain wage costs in the public sector. However, if the Government is serious about tackling the deficit it needs to freeze pay across the whole of the public sector with the exclusion of the armed services, not just the wages of senior Whitehall officials and various public appointees.
“We calculate a one year freeze would generate annual savings of at least £6 billion. This is the kind of measure the Government needs to introduce if it wants to demonstrate the existence of a credible plan to tackle the deficit. Trimming the pay of senior officials is not enough.”
