Prime Minister Rishi Sunak is preparing to announce new pressures on public sector pay in the next state government spending review in response to the economic shock of the coronavirus pandemic.
Government sources said the announcement of wage restrictions would be part of the mini budget on Wednesday as part of plans to launch the Whitehall savings movement to address record levels of government borrowing that occurred during the crisis.
The new belt tightening for many officials who have been at the forefront of the government response to the epidemic will stand in stark contrast to Boris Johnson’s four-year generous agreement with the military.
The Prime Minister told Commons Thursday that he wants Britain to lead Europe’s naval power, and an increase in the budget will help equip the Department of Defense with drones and directional energy weapons.
At the same time, Johnson also did not repeatedly check whether the government would comply with the declaration that it would maintain foreign aid spending to the world’s poorest at 0.7% of national income.
Leaders of nearly 200 charities have sent letters to the prime minister, urging them to abandon their plans to reduce the target to 0.5%.
As the Prime Minister decides to spend on key areas, including defense and green technology, Sunak is scouring the budget for potential savings.
In arguments reminiscent of the austerity-era wage freeze imposed by the Conservatives after the 2008 financial crisis, the acceptance is expected to argue that public sector earnings should match the private sector, where wages are under severe pressure from the UK economy. Battle through the deepest recession in history.
It is understood that NHS staff, including doctors and nurses, will be exempt from the renewed limit period in order not to cause an angry public backlash due to the frontline role of healthcare workers during the epidemic.
However, the union warns that a new wage freeze elsewhere will still kick its employees after Boris Johnson has promised to end austerity before the 2019 elections and millions of key workers continue to pledge to keep the country going. Had a health emergency.
Frances OGrady, TUC’s Secretary General, said: Freezing wages is not a way to reward key workers for their service. Unions will fight for the appropriate wage increase they have earned. Those who work should not carry the burden of crisis.
Dave Prentis, Unison’s secretary general, said key workers in the public sector remain at the center of the fight against Covid. The government will have to do the right thing next week and announce more than what the pay raise employee has earned. Less than that, he said, there is a risk of destroying fraud when the whole country threatens fraud.
The imminent start of the Prime Minister’s Savings Movement comes as government spending surges in response to the epidemic, with more than 40 billion subsidizing the wages of up to 9.6 million workers through a sequel plan. Extending the wage subsidy plan by the end of March is expected to cost billions more in addition to spending more than $210 billion on the government’s emergency response to Covid since the pandemic began.
Official figures to be released along with the spending review by the Office for Budget Responsibility, which are government economic forecasters, are expected to surge to over 400 billion this year due to economic losses from the crisis.
As tax receipts fall off the cliff as spending and containment restrictions to mitigate economic blows freeze business activities sharply, it would more than double the size of the budget deficit caused by the 2008 financial crisis.
The government spends more than 200 billion annually on hiring more than 5.4 million people in public sector jobs, the majority working in education and health.
Sources say the Treasury is expected to highlight official figures last year that public sector workers benefited from a 7% raw wage premium over private sector workers.
Sunak thinks it is important because the National Statistical Office’s analysis emphasizes that the average public sector worker earns more than the private sector even after taking into account individual characteristics, job types and skills.
However, according to a study by the Institute of Finance, public sector salaries are 1.5% lower than in 2010 after inflation and are among the lowest compared to private sector income for decades. This, he said, probably had difficulties hiring workers and retaining existing staff.
The rationale for the three-year wage freeze for public sector wages that Su Nak may consider is summarized in a report released on Friday by the Center for Policy Research, a right-wing think tank.
The CPS said it could save $23 billion through a three-year wage freeze for workers, insisting on wage restrictions in the public sector. Similar to the policy that George Osborne implemented as part of the Whitehall budget cuts in the austerity era, the option to allow wages to increase by only 1% per year would save more than 11 billion.
Robert Colvile, Director of CPS, is one of the leading authors of the 2019 Conservative Party Declaration. The CPS also recently urged the government to abandon its pledge to raise the minimum wage and scrap the triple lock on pensions.
Employee representatives warned that if the new restrictions apply broadly, the wage freeze would have a serious impact on government plans to hire thousands of employees for key roles in the public sector after escaping during the last decade’s austerity period.
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Kevin Courtney, co-secretary-general of the National Education Union, said the government has pledged to raise the starting salary of teachers to more than 30,000 per year by 2022. If we leave this position, we will be very concerned. Will. That would be completely irrational. They did so due to teacher recruitment problems, he said, that the problem will come back to revenge after the pandemic.
GMB Trade Union Secretary of State Rehana Azam said plans will come to limit salaries to maintain book balance as millions of pounds are paid to businesses closely related to government ministers.
Billions are wasted and flows from the Treasury into the pockets of friends. Some people are benefiting from the epidemic while our workers work through the epidemic.
This is a dangerous area if the prime minister limits salaries as a way to offset the cost of the epidemic. Didn’t go through it, it was still in it. Does he really want to do this when people’s morale is too low? When people have lost those who worked with loved ones, is it time to drive them further away? I don’t think it will work out.
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