Secretary of the Treasury Simon Clarke has effectively ruled out raising public sector wages in line with inflation, putting the government on a collision course with teachers, NHS staff and civil servants considering a strike. As the country prepares for the biggest train strikes of a generation today, Clark acknowledged that there was little chance of a last-minute deal to prevent them. Using some of the harshest expressions on the issue he has ever heard from the government, he insisted that “public sector pay discipline at all levels is really important” to avoid an inflationary spiral. Clarke said: “There is a need for collective discipline here. And that’s the message we send to all employers. ” He told Times Radio: “The grim reality is that if we come up with bidding bills that wreak havoc on any part of the public sector, it will have a big impact on the whole. “And we end up in a place where expectations are completely wrong, inflation is inflating and all this inflationary spiral that we want to prevent is becoming more difficult to reverse.” Asked if this means teachers, doctors and other public sector workers could give up hope of inflation-matching wage increases, which are expected to reach 11% this year, Clarke said: “I think it is it is extremely unlikely that such an outcome would ever be approved. correctly.” He said it was “ultimately in the national interest not to end up with the situation our predecessors had in the 1970s, where they failed to manage the threat of inflation and destroyed living standards.”
Johnson has minor surgery
Boris Johnson is scheduled to attend a summit in Rwanda on Wednesday JOE GIDDENS / GETTY IMAGES Boris Johnson had a “minor operation” on a problem with his sinuses this morning, Downing Street revealed (writes Steven Swinford). The prime minister underwent surgery at an unknown NHS hospital and is recovering. He was placed under general anesthesia. Dominic Raab, the deputy prime minister, has been accused of making any “significant decisions” in the 24 hours following the operation. The prime minister’s official spokesman said the operation took place at 6am and the prime minister returned to No. 10 at 10am. They said that the operation had nothing to do with his valuable admission to the intensive care unit after he fell ill with coronavirus in 2020. The prime minister is expected to travel to an international summit in Rwanda on Wednesday. It is unclear whether he will attend the cabinet tomorrow. The spokesman said the operation was a success.
Lawyers picket at Old Bailey
Criminal trials across England and Wales will end next week after lawyers overwhelmingly backed the pay strike. Lawyers are set to line up in Old Bailey, London, and five other major courts across the country from June 27. They will strike on Monday and Tuesday and then for three days in each of the next three weeks. The strikes come as more than 80 percent of those polled by the Criminal Bar Association backed an escalation in a two-month-long “rule of law” campaign on legal aid rates in criminal matters.
“Show restraint or go back to the seventies”
Simon Clarke, the Secretary-General of the Treasury, was clear this morning. Both private and public sector employers need to show restraint in pay (writes Steven Swinford). “We can not enter a world where we are pursuing inflation expectations,” he said. “This is the surest way to bake in a repeat of the 1970s.” His intervention represents a significant change in the position of the government. In February, Andrew Bailey, the Governor of the Bank of England, made a very similar intervention. “We are trying to see a fairly clear restriction on the remuneration process because otherwise it will get out of control,” he said. “It’s not right now, but it will be. “I am not saying that no one receives a salary increase, but I think what I am saying is that we should see a restriction on pay negotiations, otherwise it will get out of control.” Simon Clark’s intervention marks a change in government position IMAGES BEN CAWTHRA / LONDON NEWS His comments contradicted Boris Johnson’s vision of a “high-wage, high-skill” economy, and No. 10 took the rare step of publicly scolding Bailey. “It’s not something the prime minister is asking for,” said a spokesman for the prime minister. “We recognize the challenge of the economic picture presented by Andrew Bailey, but it is not up to the government to set wages and advise on the strategic direction or management of private companies.” The question is whether Clarke has a view for the Treasury or a view for the whole government. Johnson, it is worth noting, has repeatedly dismissed inflation concerns last year and has a more strengthening view of the economy. It remains to be seen whether this aid will last against 11 percent inflation.
The long-running dispute is ridiculous, says the head of the railways
Sir Peter Hendy, president of Network Rail, has said that the prospect of the strikes continuing for six months is “ridiculous” (writes Ben Clatworthy). Heidi said the railway company, which manages the lines and central stations, would not rule out the use of agency workers when ministers change the law. He told LBC: “We can not go on strike for six months, that’s ridiculous. The country is barely on its feet after Covid. RMT and the other union members and our staff certainly do not have the luxury of losing such money. And our concern is to solve it before it starts, because it will not become easier “. Asked if he would not rule out the use of agency staff, Heidi replied: “I’m not saying anything about it, when the law allows, we will take a look and see if this is sustainable, but it will not help us tomorrow. ». Senior rail sources said last night that bringing in workers would not be the “silver bullet” to avoid ending the strikes. While they said the industry “generally welcomed” the plan, it would only prove useful in less specialized areas of the industry, such as train shippers, station staff and cleaners. “It takes a year to train someone as a beacon,” the source said. “In the same way, you can not just put an agency employee in the cabin of a train. “It’s not a silver ball at all.”
Labor says departures are “understandable”
Labor says this week’s rail strike is “understandable”, as the party has tried to avoid either fully supporting or condemning the closure (writes Chris Smith). Louise Haigh, the shadow transport secretary, defended the “right of the unions to demand and fight for a fair wage settlement”, arguing that a Labor government would have avoided the strikes by taking the negotiations more seriously. He accused the ministers of “watching” the talks by refusing to participate directly or giving the train companies room for agreement. Labor has repeatedly been forced to clarify the comments of shadowy cabinet members who appear to be supporting the strikes as the party tries to avoid alienating unions without allowing the Conservatives to label them as supporters of the unrest for millions of workers. Louise Haigh says rail unions are entitled to fight for fair pay ANDY RAIN / EPA “We support an agreement and we want to see a solution,” Haigh told BBC Radio 4 Today. “Of course, workers have the right to demand a fair wage settlement – these workers kept the country stored during the pandemic and the cargo moved across the country.” He added that “workers have every right to demand and fight for a just settlement of wages at the moment in the context of the largest decline in living standards since the registrations began”, adding that “it is understandable that unions are taking this action because they were deprived of the negotiating table “. With ministers vigorously backing public sector wage increases, Haigh argued that an impending summer of strikes was the result of ministers failing to come up with a plan to tackle inflation or the cost of living. “Their only strategy is to tell employees that they have no right to demand a pay rise and that they have nothing else to say about how to reduce bills or put money back in employees’ pockets,” he said. he said. Haigh also declined to comment on pay agreements for other public sector employees, saying “they are subject to individual independent pay review or collective bargaining procedures and I am not going to undermine those processes.” John Leach, assistant general secretary of the RMT railway union, criticized the workers’ lack of wholehearted support. He told the BBC: “We want political support wherever it comes from and the Labor Party must really refocus on its responsibility to represent those in society who are looking for a better situation.”
Gasoline prices are at new highs
Gasoline prices reached a new high of 188.7 liters yesterday despite the wholesale cost being reduced by the Platinum Jubilee (writes Ben Clatworthy). A week ago it was 185.04p and a year ago it was 131.1p. Diesel also continued to rise, reaching an average of 196.06pa liters yesterday. This time last week it had reached 190.92p and 12 months ago it was 133.47pa liter. Luke Bosdet, AA’s spokesman for pump prices, said: “Since the jubilee, the wholesale cost of petrol has fallen. This comes at a time when the oil industry says it is large enough for cost changes to begin to be reflected in the pump. And yet the average price of petrol across the UK has not even leveled off. He continued to climb new records. “Consumers in the UK who use cars deserve to be treated much more fairly than the road fuel trade. If the courts do not start reducing gasoline prices …
