§ Mr. Barry JonesTo ask the Secretary of State for Wales if he will provide additional funds to local education authorities to match the teachers' pay award; and if he will make a statement.[18448]
§ Mr. RichardsMy right hon. Friend's decisions on the Welsh local government revenue settlement for 1996–97 were approved by the House of Commons on 8 February. The settlement is consistent with the Government's commitment to restrain public expenditure and is sufficient for all local authorities in Wales to fund services adequately.
The School Teachers Review Body took account of the Government's policy on public spending, including their view that increases in public sector pay should be met from improvements in productivity and efficiency, along with evidence submitted by the teachers' unions and the employers, in formulating its recommendations.
The Government do not consider it appropriate to provide additional resources to fund the pay award. The money could be found only at the cost of other important spending programmes, such as health. The decision to stage the award, increasing pay scales by 2.75 per cent. from 1 April 1996 and by a further 1 per cent. on 1 December 1996, will help local authorities and schools absorb the increases and meet the demand of other budgetary pressures.