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In new year policy blitz, Centre for Policy Studies suggests cutting public sector pay and cutting taxes for the low-paid

By Tim Montgomerie
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Over this Christmas period the Centre for Policy Studies is publishing a series of policy resolutions for 2012...

Howard Flight has argued that it's vital that Britain remains ahead of the international pack in 2012 in its determination to be a world leader in deficit reduction. He suggests there's more scope for deeper spending cuts and he focuses on public sector pay:

"The “hosing” of money at the public sector by Gordon Brown, combined with agreeing very generous pay deals with the public sector Unions have led to a position where public sector pay, level by level, is around 10% above private sector pay, without allowing for the value of public sector pensions.  Moreover, many in the private sector are facing being obliged to agree pay reductions if they are to keep their jobs.  A significant proportion of total public spending is represented by pay and this, therefore, an area where a 5% pay reduction, across the board, would achieve substantial savings."

If Howard Flight is busy saving money Tim Morgan of Tullett Prebon spends it in the second CPS resolution:

"Government should seek to reward work, and to offset pressures on low- and middle-income working people, by raising the thresholds for income tax and National Insurance to £12,000, to be funded by additional cuts in public expenditures."

Mr Morgan also recommends deregulation and greater restriction of entitlements in order to boost growth.

Deregulation to help small businesses, in particular, is the focus of the third resolution - written by Dom Raab MP.

You can follow these resolutions via this page at the new CPS website. There'll be fifteen in total.


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