§ Mr. RendelTo ask the Chancellor of the Exchequer which particular areas of public sector employment(a) are and (b) are not covered by the recommendation that public sector pay bills should not increase.
§ Mr. PortilloAs my right hon. and learned Friend the Chancellor of the Exchequer announced in his statement of 14 September 1993 and confirmed in the Financial Statement and Budget Report, in 1994–95 Government Departments will be expected to keep their running costs, including pay budgets, to their 1993–94 level in cash terms, except where, there are significant changes in activity. This is not a freeze on pay settlements and does not pre-empt forthcoming pay negotiations. However, pay increases will need to be funded by efficiency improvements. The Government expect a similar approach to be applied to all other public sector pay groups.