Report claims regional pay would cost jobs and cash

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REGIONAL pay proposals pose a £761million threat to the economy, it was claimed today

A report commissioned by the TUC found no evidence to suggest rates of pay for teachers, nurses and dinner ladies has an impact on firms hiring staff.

The possibility of introducing regional pay rates in the public sector were announced by Chancellor George Osborne earlier in the year.

Wages would be frozen until they came into line with the private sector.

However, the New Economics Foundation report claims it would mean up to 9,000 jobs could go across the North East, with £761million a year being lost from the economy.

Kevin Rowan, Northern TUC Regional Secretary, said: “The TUC has consistently said the analysis that persuaded the chancellor to consider introducing regional pay was at best weak and at worst completely bogus.

“This report shows that localising public sector pay will have no positive impact on private sector growth.

“What the chancellor must do now is recognise that this policy would be a disaster and rule out regional pay and concentrate instead on measures that would lead to growth and employment, a future that works for everybody.”