Opinion – Theresa May will review the cap on public sector pay as public have grown ‘weary’ of austerity | Business Insider

English: Protestors gather in Sheffield to dem...

English: Protestors gather in Sheffield to demonstrate against government plans to change public sector pensions. (Photo credit: Wikipedia)

English: Teachers at New College Nottingham pr...

English: Teachers at New College Nottingham protesting against government pension plans. (Photo credit: Wikipedia)

English: Protestors in Brighton on June 30 ove...

English: Protestors in Brighton on June 30 over pension changes. (Photo credit: Wikipedia)

Read this for the latest concessions from the ‘weak and wobbly woman’!

Source: Theresa May will review the cap on public sector pay as public have grown ‘weary’ of austerity | Business Insider

Pay increases without productivity incentives are inflationary.

This blog has long argued that austerity has been too prolonged but far too shallow – the impact has been like the bacon-slicer to public services, leaving the country open unacceptable risks.

Radical reforms and consolidation of the public sector have been ignored because ministers lacked the stomach.

Here’s an open question:

Will the Conservative Government now be forced into radical reform in the public sector to finance the downside risks from Brexit? If so, what are some of the likely targets?


One response

  1. Dr Alf brings us an interesting story but one which has already been overtaken by events following Mrs May’s latest U turn.

    When the Banking Crisis finished I was for two years of brutal Canadian style austerity coupled with measures to stimulate export led growth. We got neither of these because the politicians lack the “cojones” to face down public sector trades unions, malingering pensioners bleeding the NHS dry and mendacious Chief Constables, Head Teachers, Local Authority Chief Executives and Common Purpose trained quangocrats. That failure coupled with the failure to deal with fat cat bosses who pay themselves too much, deliver no increases in shareholder value, fail to sell, fail to export and fail to motivate their workers to improve productivity brings us to where we are today.

    Dr Alf asks what the likely targets for cuts are likely to be.

    I suspect the politicians will fudge by further rationing of NHS care, introducing tougher benefit eligibility criteria and further moves to extend IR35.

    They might increase some taxes on middle earners but they will avoid confrontation and do nothing to force police, council and fire service reform, nothing to effect Adult Social Care and NHS mergers and nothing to drive exports.

    Under May all one can expect is minimalism and failure.

    Lord Tebbitt suggests the Conservatives need to skip a generation and I agree with him. Putting May and her zombie Cabinet to the sword would be a good first step looking at people like Kwazi Kwarteng who is robust, telegenic, sharp and black would be a good way to wrongfoot Corbyn.

    Then after the Conservative Party Conference, there can be imposed reform starting with Local Authorities and BBC privatisation and then moving hard against Chief Constables and Fire Chiefs with timing to coincide with the trials of Bettison and Duckenfield for their roles in the Hillsborough disaster.

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