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Rachel Reeves MP, Labour’s Shadow Chief Secretary to the Treasury, responding to Downing Street’s comments on localised pay bargaining in the public sector, said:

"We have consistently opposed the Government's plans to undermine the pay review bodies by shifting wholesale to regional and local bargaining in the public sector.

"The national pay review bodies have been an effective way of keeping a tight control of costs while allowing for regional and local variation consistent with the need to recruit, retain and motivate staff in every part of the UK.

"George Osborne has been very clear that he wants to move to localised pay bargaining - despite the evidence that it will prove costly to the public purse and exacerbate regional inequalities. If the Government finally listens it would be another welcome u-turn forced upon this increasingly embattled Chancellor."

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