MPs must set example with 1.9% pay rise, insists Brown

GORDON Brown yesterday told MPs that they would have to settle for a pay rise of below 2 per cent to set an example to public-sector workers facing the same squeeze.

The Prime Minister said that Westminster parliamentarians and government ministers had to demonstrate the "discipline that we ask of other people".

He said breaking the back of inflation and keeping the economy on track would be a key indicator of why he should be re-elected in 2010.

Mr Brown also accused the Tories of "opportunism" on issues such as a new generation of nuclear power stations, new homes and new transport projects, like a third runway at London's Heathrow Airport.

And in an indication that he was ready to go to the wire before calling a general election, he said: "It's a long game. The issue for the next year is are we going to make the right long-term decisions? And I believe we will."

In a combative performance on Andrew Marr's Sunday AM programme, Mr Brown made it clear that he was not ready to back down over staged pay increases for police and nurses in England, despite the fact full pay rises had been given in Scotland.

The Prime Minister said that keeping public pay below inflation was vital to ensuring the UK economy came through a difficult year. And he said

that his government would not shirk "tough choices", even if the easy option was a relatively good alternative.

Mr Brown also made it clear that he was ready to back a new generation of nuclear power stations – expected to be announced by John Hutton, the Business Secretary, next week – and would not allow short-term pressures of "events" to deter him from ensuring the long-term economic stability of the UK. He denied allegations that he was a "ditherer" and that Tory leader David Cameron's message was, in the words of Jack Straw, the Justice Secretary, "resonating with the public".

However, Mr Brown's starkest message was to MPs, many of whom believe that a recommendation by the Senior Salaries Pay Review Board (SSRB) – that they should have a 2.8 per cent increase on their current £60,675-a-year salary – should be approved by the Commons.

While he accepted it was for his colleagues to vote at Westminster on the final decision, the Prime Minister said: "My recommendation is that for all the significant pay increases that were recommended by the SSRB, government ministers must have a rate-of-pay increase that is below 2 per cent – 1.9 per cent.

"My recommendation is, at the same time: that is what goes for MPs. We must show exactly the same discipline that we ask of other people."

He stressed that 2008 would be "a decisive year for the economy", adding: We've got to take the right long-term choices this year."

Mr Brown said he would be judged, as would Alistair Darling, the Chancellor, by whether the right choices were taken.

However, George Osborne, the shadow chancellor, rejected the Prime Minister's claims that Britain was well placed to tackle tough economic times ahead.

He said: "It's no use Gordon Brown blaming the rest of the world. He should have used the good years to prepare us for the difficult years. But he failed."