Labour’s public sector pay plan ‘doesn’t cover the cost’

Labour’s public sector pay plan ‘doesn’t cover the cost’

Jeremy Corbyn is calling for the public sector pay cap to end

Wednesday, June 28, 2017

Labour’s plan to end the cap on public sector pay falls well short of figures published by the Institute of Fiscal Studies.

Jeremy Corbyn is to table an amendment to the Queen's Speech today, which calls for an end to the 1 per cent public sector pay cap and cuts to the emergency services.

The Shadow Chief Secretary to the Treasury, Peter Dowd, said his party had “set aside £4 billion a year for this” but Julia Hartley-Brewer questioned whether the proposal actually covers the costs involved:

“Am I not right in thinking the Institute of Fiscal Studies [IFS] says that the cost would be £9 billion?” 

The presenter pointed out that 5.1 million workers are affected, and asked: “Why have they (the IFS) got a figure of £9 billion and you’ve got a figure of £4 billion?”

The MP for Bootle said: “What we try to do in terms of our spending plans is set aside a reasonable figure in terms of a ‘down payment’.”

He argued that £4 billion would go "a significant way towards helping the public sector”.

But Julia countered that that simply “doesn’t cover the cost". 

Listen to the full interview above