Agenda item

The Council considered a motion from the Labour group regarding the public sector pay cap.

On a motion from Councillor Charles Gerrish, seconded by Councillor Paul May, it was

RESOLVED

Council notes that:

1.  In 2010 the Coalition Government inherited the largest peace-time budget deficit in this country’s history.

2.  In order to reduce this budget deficit and restore our public finances, difficult decisions over public spending and public sector pay have had to be taken by both the current Conservative Government and previous Coalition Government.

3.  As part the current and previous Governments’ measures to reduce the budget deficit and restore our public finances, local government employees have had a pay freeze from 2010-2012, with annual pay rises of 1% since this time (excluding pay increments and increases resulting from minimum wage/living wage changes).

4.  The Office for Budget Responsibility estimates that 200,000 public sector jobs have been protected as a result of the Government’s pay policy.

5.  Despite the significant financial challenge faced by the current and previous Government, 4 million of the lowest paid workers have been taken out of paying Income Tax altogether and 13 million workers have had their Income Tax reduced, benefiting all workers including those in the public sector.

6.  The introduction by the Conservative Government of the National Living Wage has resulted in a pay uplift for Council employees on lower pay bands, and that the Government is committed to continue increasing the National Living Wage to 60% of median earnings by 2020.

7.  The Local Government Employers organisation has calculated that the NJC pay claim as submitted by GMB, Unison and Unite would cost £559 million nationally, and that a 5% pay increase – as proposed by the NJC - would cost around £3 million to B&NES.

8.  The Government is currently considering the recommendations of various independent public sector pay review bodies, with the Government responding to the first of these - relating to police and prison staff – earlier this week.

This Council believes that:

1.  It has been right for the Government to take the necessary steps to reduce the budget deficit and restore our public finances, and recognises the significant contribution and sacrifices that public sector workers have made to these national efforts.

2.  Whilst pay policy will continue to have a role to play in the Government’s efforts to reduce the deficit and protect our economy, some greater flexibility is needed in relation to public sector pay going forward, particularly recognising recent increases in inflation.

Council resolves therefore to:

1.  Continue to work through the Local Government Employers association to reach agreement on a pay settlement for 2018/19 onwards, a national process which will include consideration of the NJC proposals.

2.  Ask that the Government listen carefully to the recommendations of the public sector pay reviews currently being undertaken by independent review bodies nationally, and that through the LGA the Council lobby Government that any uplift in public sector pay nationally is also reflected within the 2018/19 local government grant settlement.

[Notes:

1.  The resolution above was a successful amendment to the original Labour motion and was carried with 32 Councillors voting in favour and 22 Councillors voting against.

2.  This then became the substantive motion which was carried with 32 Councillors voting in favour and 22 Councillors voting against.]