18 Jan Falling inflation will make it easier to settle public sector pay disputes, says minister
A minister has hinted that falling inflation will make it easier for the Government to settle public sector pay disputes.
Immigration minister Robert Jenrick told GB News: “One of this government’s five principal objectives is to half inflation over the course of this year and to bring it back down closer to 2%, where we want it to be.
“It does seem as if inflation is now starting to slowly fall and that will make life easier for everyone – and hopefully it will make it easier to settle these disputes.
“What we have said to the unions across the public sector is come in and talk to us about next year’s pay, we’re going to be very open. In fact, we already have done in most cases and are setting out what we think the costs and affordability challenges are across the public sector. We are also setting out what we think inflation is likely to be over the course of this coming year, and then we are working to try and find a sensible way forward that is affordable to the taxpayer which doesn’t add to inflation.”
He added: “If inflation has peaked and is starting to come down, the worst response that we as a Government could make to that is to increase public sector pay significantly and therefore lock that inflation in for longer than is necessary and get into a kind of homegrown domestic spiral of inflation.
“We should be responding to the first tentative signs of falling inflation internationally by redoubling our efforts not to make the issue worse domestically.”
In an interview during Breakfast with Eamonn Holmes and Isabel Webster, he was asked if leading figures in government were blocking progress made during talks with the Royal College of Nursing.
Mr Jenrick responded: “I don’t think that’s right…everybody across government wants to treat this matter with a spirit of collegiality, to be as reasonable as possible to meet with representatives to talk to them about next year’s pay and the challenges that public sector workers are facing.
“But it is simply absolutely critical to everyone in this country that we do get a handle on inflation. As I say, if energy prices are beginning to fall internationally, then that means that some of the extraneous factors are working in our favour.
“What we mustn’t do is domestically lock in inflation by seeing large pay rises in the public sector or indeed across the private sector…we’ve got to be very careful to ensure that we’re treating it sensitively not leading to further rise in inflation and thinking about affordability for the wider taxpayer.”
