Small BusinessUK plans cutback on public sector salary increases
The British government plans to freeze the salaries of top bureaucrats and offer only minimal increases to other senior workers in an effort to control the country"s spiralling deficit, a treasury official has said.
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Another government official said the plan would effect about 750,000 public sector workers, including doctors, judges and senior bureaucrats. The latter — about 40,000 people — would see their salaries frozen at their current level, while the rest would see tiny increases of between 0 and 1 per cent — a fraction of the annual raises typically awarded by the government.
The official said nurses, police, and firefighters would not be affected, while the military would be exempt altogether. He spoke on condition of anonymity as the full details of the plan have yet to be made public.
Liam Byrne, the chief secretary to Britain"s Treasury, said the move was necessary in order to put Britain"s recession-hit finances in order.
"Britain"s public servants are invaluable. But if we want to halve the deficit over four years and protect front line services, we have to make tough but realistic decisions on pay," Byrne said in a statement.
Britain is struggling to control a record-high national debt topping $1.6 trillion and the country"s three main political parties agree that painful cuts to government spending must be made.