§ Mr. Lawrenceasked the Chancellor of the Exchequer whether the 3 per cent, pay norm mentioned in his Budget speech is an absolute maximum or is open to negotiations.
§ Mr. Robert SheldonAs my right hon. Friend said in his Budget Statement, he based his tax relief proposals on a pay limit of 3 per cent, because he does not believe that, in the circumstances of the coming year, a higher limit could be relied on to bring down our rate of inflation to that of our principal competitors. But he emphasised that he was not seeking to dictate or impose a particular figure. It will of course be for the TUC to judge the size of the pay increase to which it can secure the agreement of its members.