Torbynistas’ £9 Billion Bill

More taxes, more spending, more borrowing, slower deficit reduction, wobbling on tuition fees and ending the public sector pay cap – some members of the Cabinet are becoming Torbynistas. Jeremy Hunt has demanded the “1% cap for NHS workers” is lifted, Justine Greening wants the same for teachers. Now Boris is briefing out he “strongly” believes the public sector pay cap should go. The IFS says copying Jezza’s cap-ditching policy would cost £9.2 billion per year, at a time when the national debt stands at nearly £1.9 trillion…

The 1% cap figure is also very misleading. Many NHS workers and teachers get a salary rise each year additional to national pay. As former minister Rob Wilson points out, this isn’t widely known and is worth several hundreds of pounds a year to several thousand pounds a year depending on salary band. The 1% figure everyone uses isn’t the whole story, for many the real number is more like 4%.

As the IFS says, in the last ten years public sector pay has accelerated faster than the private sector. Indeed earlier this year the IFS reported public sector workers are still being paid hundreds of pounds a year more than their private sector counterparts, despite “austerity“. None of the Torbynistas calling for an “end to austerity” are talking about how they are going to pay for it. For Boris this could be the most expensive Tory leadership campaign in history…




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