§ 24. Mr. Marlowasked the Chancellor of the Exchequer whether he has any proposals to safeguard the economy from the effects of pay increases in the public sector, including the pay award to teachers.
§ Mr. BiffenCash limits for central and local government expenditure are set on the basis of what the taxpayer and ratepayer can afford and pay negotiations must be conducted within this framework. Regard is also paid to the consequences of the staged implementation of past settlements. Pay in the public trading sector is determined by what management can afford in the light of the external financial limits set by the Government.