Financial Times FT.com

Brown wages war over pay

Published: January 13 2008 20:00 | Last updated: January 13 2008 20:00

Gordon Brown is fond of talking about long-term plans. So there is some logic in his resurrecting the idea of multi-year public sector pay deals. Such deals have some merit in principle, yet Mr Brown’s simultaneous demand for pay increases of only 2 per cent – necessary because of his government’s shortage of cash rather than his stated desire to control inflation – makes them likely to fall victim to fierce battles with public sector unions.

The case for multi-year deals is that they improve long-term financial planning for government departments and provide a solid foundation for reforming pay structures and working practices.

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