Local pay plans could lose the economy almost £10bn a year
Today the TUC published research by the New Economics Foundation which comprehensively debunks the government’s arguments for localising public sector pay. It also models the economic impact that the proposals could have, finding that they could cost the economy up to £9.7bn per year. Even in the ‘best case’ scenario, accepting the government’s highly contestable argument that public sector pay crowds out private sector growth, the economy would take a hit of £2.7bn per year. I’ve got a post over at Left Foot Forward with more details.