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| Ministers give up 2008 pay rises | Ministers give up 2008 pay rises |
| (20 minutes later) | |
| Downing Street has announced that all Cabinet ministers will give up their pay rise for this financial year. | Downing Street has announced that all Cabinet ministers will give up their pay rise for this financial year. |
| The government has also rejected a £650 a year above inflation rise for MPs for the next three years as recommended by Sir John Baker's review of MPs' pay. | The government has also rejected a £650 a year above inflation rise for MPs for the next three years as recommended by Sir John Baker's review of MPs' pay. |
| The review said MPs should "set the example for public sector pay restraint at a time of economic uncertainty". | |
| The government is to back proposals from Sir John which would mean MPs no longer vote on their own pay rises. | |
| They also plan to recommend that MPs' pay increases should be linked to the median average of rises paid to a wide range of public sector workers. | They also plan to recommend that MPs' pay increases should be linked to the median average of rises paid to a wide range of public sector workers. |
| In a statement, Prime Minister Gordon Brown said: "Given the importance of public sector pay restraint at a time of economic uncertainty, ministers will not be accepting any pay rise." | |
| Ministers' pay should go up in line with that of senior civil servants, who will get a 7% increase over next three years - and were due to get a 1.5% rise in the next year. |