No new Government money for pay rises means more cuts to frontline services, warns MP

Reports suggest that no new money will be allocated by the Treasury for pay rises above 1%, meaning today’s announcements will mean a new round of cuts to frontline services and actual pay cuts for some.

MP for Portsmouth South, Stephen Morgan, has expressed his concern that the Government’s refusal to fund its recently announced public sector pay rise will lead to further cuts to services and even a real-terms pay cut from some workers.

The IFS say today’s announcement will cost £800m a year from existing budgets, including £320m from education budget. The announcement has been sneaked out by Government on the last day of Parliament before summer recess – leaving more questions than answers.

Consumer Price Inflation was 2.4% in the most recent ONS figures, meaning that any rises lower than inflation effectively amount to yet another pay cut.

Since his election, Stephen has been campaigning for the Government to lift the public sector pay cap. He’s asked questions in the House of Commons to a number of Secretaries of State and today called on the Chief Secretary of the Treasury to release detail on when armed forces personnel would receive their consolidated payments.

Stephen Morgan MP, said:

“At best, this is sleight of hand from the Government, and at worst, a scam. They’ve launched this small pay rise but without new money to fund it.

I’ve been taking action to address this issue for some time now and I welcome any movement. But many in our city will still find that their income lags behind inflation, and those who do receive a well-deserved pay rise will be rightly disappointed that the Tories have raided local services and schools to pay for it.

The Tories are running a false economy and its people in Portsmouth who are bearing the cost”.