The CBI business organisation has called for an immediate two-year freeze in public sector pay.<\/p>\n
While the CBI said there could still be wage increases for frontline staff and the lowest paid, the overall bill should not be allowed to rise.<\/p>\n
Public sector union Unison said the CBI proposal could restart the recession.<\/p>\n
Prime Minister David Cameron has already announced a cut in bonuses for senior civil servants, and an inquiry into wider civil service pay.<\/p>\n
Members of the new cabinet have also voluntarily cut their pay by 5%. Big savings<\/span><\/p>\n The Conservative-Liberal Democrat government plans to reduce public spending by \u00a36bn in the current financial year, and Chancellor George Osborne is due to present an emergency Budget on 22 June.<\/p>\n This could also give details of changes to public sector pay.<\/p>\n The CBI said the civil service had to follow the lead of the private sector, where average pay fell by 0.9% last year.<\/p>\n By contrast, it said wages in the public sector increased by 2.8% in 2009.<\/p>\n The CBI estimates that selected public sector pay and recruitment freezes could save \u00a318bn over the next two years.<\/p>\n It said the move could run parallel with new measures to allow businesses to create jobs and boost economic growth.<\/p>\n","protected":false},"excerpt":{"rendered":" The CBI business organisation has called for an immediate two-year freeze in public sector pay. While the CBI said there<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","footnotes":""},"categories":[38],"tags":[],"class_list":["post-305","post","type-post","status-publish","format-standard","hentry","category-public-sector"],"_links":{"self":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/305","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=305"}],"version-history":[{"count":0,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/305\/revisions"}],"wp:attachment":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=305"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=305"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}