Public sector: "Artificially low" pay ignored

Unions representing the public sector have expressed disappointment at the Budget, which made little mention of public servants.

The government has been locked in a dispute with public sector workers including nurses, police officers and prison officers in recent months over its insistence on a two per cent pay deal.

Ministers justified this on the need to maintain inflation but Alistair Darling today forecast a return to low inflation by 2009.

Based on this, the Unite union said it was disappointed there had been no mention of relaxing the "artificially low" public sector pay limit.

The Public and Commercial Services Union said the Budget had been a "missed opportunity to reach out to public servants".

Mark Serwotka, PCS general secretary, said: "The chancellor billed this budget as one built on fairness, yet continues to hide behind the discredited argument that public sector pay is fuelling inflation as an excuse to drive down the wages of the people who keep this country running.

"The Budget was a missed opportunity by the government to reach out to civil and public servants in recognising that they are the victims of inflation and deserve fair pay."

Unison said the chancellor appeared to have little room for manoeuvre and this was "hampering progress towards a fairer Britain".

General secretary Dave Prentis said the world class public services touted by the chancellor would demand well trained and motivate staff, but sticking to an "artificial pay cap" of two per cent risked a recruitment and retention crisis.

The TUC concluded the Budget had been bad news for public servants.

With efficiency savings public services are already facing £30 billion in cuts a year.

"Public servants will also be expected to accept pay deals that lead to cuts in living standards year in, year out," said general secretary Brendan Barber.