§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer for what reasons he instructed the public sector pay review bodies not to allow their recommendations to be influenced by the headline rate of retail price inflation; and if he will make a statement. [13647]
§ Mr. DarlingPay settlements next year must be affordable and will need to take account of our commitment to keep to the existing spending plans. We have asked the pay review bodies to give this priority over other considerations, including headline RPI where the current rate is high in relation to the 2½ per cent. inflation target. Keeping pay settlements under control will help Departments to maintain the delivery of services within their budgets.