HC Deb 11 November 1982 vol 31 cc658-9
9. Mr. Race

asked the Chancellor of the Exchequer what proposals he has made as to central Government funding of public sector pay settlements in 1983–84.

Mr. Brittan

The public expenditure plans for 1983–84 announced on Monday make provision for sufficient additional cash for average increases in wages and salaries bills of 3½ per cent. from due settlement dates, for those groups, other than the National Health Service, for which the Government are directly responsible. Pay in the nationalised industries will be constrained by the external financing limits, also announced on Monday, and in the local authorities by the rate support grants, for which proposals were made in July.

Mr. Race

As there is still some dubiety over the matter will the Minister give a categoric assurance that the Treasury will fund next year's pay settlement during the financial year 1983–84 in full, without insisting that local health authorities make any direct contribution from their existing funds? Does the right hon. and learned Gentleman realise that a 3½ to 4 per cent. settlement in the public sector will mean a further reduction in the living standards of low-paid workers in particular, and further devastation of manufacturing industry, because—

Mr. Speaker

Order. The hon. Gentleman must be fair to other hon. Members.

Mr. Brittan

Negotiations are going on about the Health Service settlement. The provision for the NHS is as announced on Monday in the annual statement. Generally, I do not accept that a settlement within the financial provision would necessarily lead to a fall in living standards. A great deal depends upon other factors.

Mr. Ashton

What influence did the Government have on the recent miners' pay settlement, and what influence do they expect to have next year?

Mr. Brittan

None.