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Government statement: Public sector pay cap.
Madame Speaker

My right honourable friends, following on from the Queen's speech, I am pleased to announce that the government will ending the public sector pau cap and public sector bodies will be given a less restricted hand to negotiate with employee representatives on pay and conditions to ensure our public services are adequately staffed and adequately paid for their valuable work.

I will be announcing today that further measures will be put into place across all levels of public sector with transparency and accountability at its core. We will begin by publishing the salaries and bonuses of any non banded staff. All ministerial pay will remain frozen for the remainder of this parliament.

I can announce to house that I have began negotiations with public sector unions on pay awards and I have tasked them and  their counterparts in the senior management to find savings and cut waste where it can found. But make no mistake my honourable friends if we want a world class education system, a world class health service, safe streets and clean air, water and decent homes for this generation  and the next that these things we all in this claim to want cannot I repeat cannot be delivered on the cheap with pound shop economics.

We must balance our efforts to reduce the deficit with ensuring that public sectors are fairly paid to reflect their valuable contribution to our nation.  Demoralising and undermining recruitment and retention of talent in public services will only serve to undermine our efforts to grow the economy and build a recovery that works for all.

The government is committed to delivering world class public services and we will ensure the skilled talent is attracted to work in them. This extra money in the pockets of millions of public sector workers will serve to stimulate the local communities and boost job creation across the wider economy.
MP for Montgomeryshire 2005 - present
Chancellor of Exchequer 2012 - present

"In every political community there are varying shades of political opinion. One of the shadiest of these is the liberals. "

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Madame Speaker,

I would firstly like to welcome the Rt. Hon. Gentleman to his role as Chancellor of the Exchequer. I look forward to the many exchanges we may have in this house over the course of this government's parliament.

The first concern I must raise is that of privacy. The publishing of all salaries and bonuses of non-banded employees may be something one would like to do for the sake of transparency, but perhaps those various employees do not wish for everyone to know their salaries. Does the minister have any consolation for this issue?

The Rt. Hon. Gentleman mentions the need for balance between deficit reduction and public sector pay and talent retention, among other things of course. I'd like to ask him how that balance will be maintained when public sector pay will increase, as will the personal tax allowance as mentioned by Her Majesty, as well as introducing a reduction of small business taxes and many other costly promises. While these promises have good intention, I fail to see the practicality of all of them being implemented, especially since Her Majesty also mentioned her government would reduce the deficit every year.

In addition, I would like to ask the Rt. Hon. Gentleman if he has any additional details at this time on how he will increase transparency and accountability in the public sector. It is a topic that has been discussed many times in our history, and many would be interested to hear the government's plans.
Hon. Tyler Andrews
Conservative MP for Kensington
Shadow Secretary for Public Services
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I thank the Minister for his statement, the House shall now consider other business.
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