§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer if he will set out the details of his public sector pay policy and indicate what the permitted level is; how it was arrived at; to which posts in the public sector it applies; and to what extent its effectiveness is measured by the(a) total wage or salary bill of a public sector organisation, (b) rates of pay or (c) comparability with outside rates.
§ Mr. PortilloThe Government expect pay across the public sector in 1994–95 to be considered in accordance with the approach which my right hon. Friend the Chancellor of the Exchequer announced in my statement of 14 September 1993 and which was reflected in the expenditure programmes announced in the Budget on 30 November. That approach will play a role in restraining the overall level of public expenditure and ensuring that within established ceilings resources can be devoted to public services and investment rather than running costs and pay.
The effective application of this approach to public sector pay will constrain the overall Government pay bill and ensure that the costs of pay settlements are offset by efficiencies and other savings. Within this framework there is flexibility for different public sector groups to reach different pay settlements consistent with their own particular circumstances and under their usual pay determination procedures.