The proposals would cap public sector pay rises at £400 per person to limit the growth of the public sector pay bill while ensuring fairness for teachers, nurses, police officers and other public sector workers.
The progressive measure will save taxpayers about £4bn a year while reducing pressure on front line services and protecting jobs.
Commenting Vince Cable said:
“Public sector pay makes up a quarter of all public spending so any serious and credible attempt to limit spending must include proposals on pay rises.
“Unlike the Tories who would freeze the salaries of millions of teachers, police officers, nurses and firemen while cutting taxes for millionaires, these proposals would ensure pay rises for key frontline services that are fair and economically realistic.”
Meanwhile, Liberal Democrat Treasury Spokesperson, Jeremy Browne addressed Gordon Brown’s speech on efficiency savings in Government. He said that efficiency savings were useless without fundamental reform .
“Gordon Brown has spent over 12 years signing the cheques for an increasingly inefficient and centralised system of Whitehall bureaucracy.
“Greater efficiency is always welcome, but we will not get the improvements we need until there is fundamental reform in Whitehall.
“Central Government is too big, too powerful and too expensive. The Liberal Democrats would scrap entire departments and introduce massive decentralisation, making politics better, cheaper and more accountable.”