§ Mr. Peter Walkerasked the Chancellor of the Exchequer what is the extent to which the introduction of an incomes policy reduced the Budget estimates as to expenditure upon wages and salaries by (1) local government, (2) nationalised industries and (3) central Government employees.
§ Mr. Joel BarnettThe incomes policy announced in Cmnd. 6151, The Attack on Inflation, has had little effect on the Budget estimates of central Government wages and salaries. The rates of pay of the great majority of central Government employees in the remainder of this financial year were settled before the new212W policy was introduced. For local government the effect is greater, but still small, since the operative dates of the settlements for many local authority employees preceded the introduction of the new policy. Settlements under the new policy become operative some months after its introduction and so affect only a small part of the present financial year. Nationalised industries wages and salaries do not form part of public expenditure.