Pay freeze move cynical - Cameron

12 April 2012

Alistair Darling's announcement of a pay freeze for top public servants has been described as cynical and insubstantial by Conservative leader David Cameron.

In a sign of Labour's direction on public sector pay through the fiscal squeeze of the coming period, the Chancellor urged there should be no salary increase next year for about 750,000 of the best paid public sector employees.

They would include judges, senior NHS managers and GPs, among others. Public sector leaders expressed anger at the move, while business leaders called on the Government to go further.

The announcement came on the eve of shadow chancellor George Osborne's speech to the Conservative Party conference in Manchester, prompting questions about its timing. Asked whether Mr Darling had stolen his shadow chancellor's thunder, Mr Cameron told GMTV: "I think it is slightly cynical in its timing, it is rather insubstantial in its content and it is not part of an overall approach."

By contrast, Mr Osborne would unveil a "comprehensive" package of change on pay, pensions and benefits to tackle Britain's £175 billion state deficit, said the Tory leader.

Senior civil servants are entering the final year of a three-year pay deal in 2010, but Mr Darling wants the agreement torn up given the state of the public finances.

Three-year pay deals for non-senior civil servants will be respected, but those without agreements face rises in line with the private sector - ranging between 0% and 1%. The Armed Forces will not be affected by the move, however, in an acknowledgement of the unique circumstances currently facing the military.

David Frost, director-general of the British Chambers of Commerce, welcomed the pay freeze, but said it was "long overdue".

A British Medical Association spokeswoman said: "This is very disappointing news. This is not the time to demoralise doctors. What we had asked in terms of pay increase for all doctors was 2%. A pay freeze won't help with recruitment and retention."

Jonathan Baume, general secretary of the First Division Association, which represents senior civil servants and public sector managers, said: "We are extremely disappointed. We hope ministers aren't playing politics with people's pay."

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