§ Mr. John Grantasked the Prime Minister how she now considers public sector pay should be determined; and what is the generally desirable level for such settlements.
§ The Prime MinisterThe level of pay increases throughout the economy must be significantly reduced if international competitiveness is not to be further eroded. Individual pay settlements are a matter for management: within the public sector, they must be contained within the financial constraints set by cash limits and external financial limits.