§ 65. Mr. Lewisasked the Chancellor of the Exchequer what recent instruction or advice he has issued to those concerned that any increase in wage and salary scales must be met from a reduction in the Civil Service; how far these instructions were discussed with the Civil Service unions; and whether he will make a statement.
§ Mr. PowellMy right hon. Friend told the House on 29th October that if costs, including wage costs, went up, activity would have to be reduced. The cost of Civil Service pay increases must therefore be offset by economies, which will in some cases inevitably mean staff reductions. The instructions announcing pay increases, which are shown to the appropriate Staff Associations before issue, remind Departments of this.