Saturday, March 17, 2012

Local pay rates - doing better George

Today's pre-budget leak ( and probably not from the Lib Dems ) is that the absurd national pay levels for public sector employees is to end.

This will hurt, but it is very necessary.

It will hurt as in many beautiful parts of the country where you can buy large houses for little money public sector employees have lived like royalty, or at least their grace and favour close relations. At the same times areas of the country that pay the most tax have been served worst by the public sector as they have not been able to pay the going rate, that will allow public sector employees to exist - without the help of private sector spouses.

It also damages the less economically successful parts of the country by diverting their local talent into high paid public sector jobs, and away from wealth creating sectors.

Changing the current arrangement is to some extent unfair, in the same way that all arbitrary changes by government are. It needs to be handled gently and with some understanding for those who will have to change their expectations, but it is in the long term very good news for the whole country.

If George Osborne is really going to announce this in the budget there will at least be a loud cheer in this shed.

To those who moan - the facts are that the state is such an enormous part of our economy that its malign influence can't be ignored. But I do hope the government makes any transition gradual to give people time to adjust. ( The Unions will of course have a complete hissy fit over this. )

No comments: