PARLIAMENTARY EARLY DAY MOTION
Costs of public sector pay rises (14 December 2022)

That this House rejects the claim made in the media by the Prime Minister that it would cost an additional £28 billion to award a pay-rise for all public sector workers in line with inflation; notes that according to economists and fact-checkers the Prime Minister's claim is vastly inflated; further notes that the Institute for Fiscal Studies in its Green Book estimates that pay rises in line with inflation for public sector workers would cost about £18bn and that the Government would, in addition, get around a third of this back in tax revenues reducing the cost further by around £6bn; further believes therefore that such a pay award could cost less than half of the government’s stated £28bn figure; notes that one of the many fair options available for funding such a pay increase in line with inflation would be to equalise Capital Gains Tax rates with income tax rates which would raise up to £17 billion a year; and calls on the Prime Minister to withdraw his claim and to make an offer of a pay award in line with inflation which would be a huge step towards reaching a resolution to avoid further strikes.

Sponsored by:
Richard Burgon (Independent)