Head-in-sand Hammond rejects calls to remove pay cap

According to Philip Hammond, government must “hold its nerve” in the face of calls from within his own party for him to reconsider the 1% limit on increases in public sector salaries, which has been in place since 2012.

Speaking to business leaders at a CBI dinner, Mr Hammond acknowledged there was widespread frustration at the stagnation in real-terms pay growth at a time of rising inflation.

Addressing the current debate over public sector pay, he said government policy had “always been designed to strike the right balance of between being fair to our public servants and fair to those who pay for them”. (BBC)

Over the same period, MP salaries have risen by 14%. From £65,738 to £74,962 (

Hammond’s wealth was estimated as £9 million by the New Statesman in 2009 – when he signalled the Tories’ intention to eviscerate the public sector claiming it is “absolutely not the case” that public-sector workers were dreading cuts, but were feeling, instead, a “sense of liberation”.

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