Budget Resolutions and Economic Situation

Debate between Phil Wilson and Gavin Shuker

Friday 23rd March 2012 Commons Chamber

[Phil Wilson]

As I have said, I think that it is ideologically driven. The facts of the matter have been thought through, so my hon. Friend is quite right.

The previous Government turned their back on the wholesale devolution of pay determination at local level in 2003. A Treasury guidance note published in the autumn of 2003 stated:

“At the extreme, local pay in theory could mean devolved pay...to local bodies. In practice, extremely devolved arrangements are not desirable. There are risks of workers being treated differently for no good reason. There could be dangers of leapfrogging and parts of the public sector competing against each other for the best staff.”

[Gavin Shuker]

Does my hon. Friend also agree that one of the risks of this approach is that it will have a further deflationary effect in areas where money being spent in the local economy is vital to ensuring proper growth?