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| Chancellor Philip Hammond hits back over public pay leaks | Chancellor Philip Hammond hits back over public pay leaks |
| (about 4 hours later) | |
| Public sector workers get a 10% "premium" over their private sector counterparts, Philip Hammond said as he warned ministers against leaking cabinet talks on the pay cap. | Public sector workers get a 10% "premium" over their private sector counterparts, Philip Hammond said as he warned ministers against leaking cabinet talks on the pay cap. |
| The chancellor refused to comment on reports he had said at a meeting that public servants were "overpaid". | The chancellor refused to comment on reports he had said at a meeting that public servants were "overpaid". |
| And he suggested some colleagues who do not agree with his approach on Brexit were trying to undermine him. | And he suggested some colleagues who do not agree with his approach on Brexit were trying to undermine him. |
| Minister Liam Fox said he "deplored" the briefing by some of his colleagues. | Minister Liam Fox said he "deplored" the briefing by some of his colleagues. |
| The international trade secretary told the BBC's Sunday Politics they should "be very quiet" and "stick to their own departmental duties", adding: "Our backbenchers are furious and the only people smiling at this will be in Berlin and Paris." | The international trade secretary told the BBC's Sunday Politics they should "be very quiet" and "stick to their own departmental duties", adding: "Our backbenchers are furious and the only people smiling at this will be in Berlin and Paris." |
| Since the general election, cabinet splits have surfaced over the issue of the 1% cap on public sector pay rises, with some ministers pressing for it to be lifted. | Since the general election, cabinet splits have surfaced over the issue of the 1% cap on public sector pay rises, with some ministers pressing for it to be lifted. |
| Labour is promising £4bn which it says would offer a pay rise to workers. | Labour is promising £4bn which it says would offer a pay rise to workers. |
| On the BBC's Andrew Marr Show, Mr Hammond defended his stance, saying public sector pay had "raced ahead" of the private sector after the economic crash in 2008. | On the BBC's Andrew Marr Show, Mr Hammond defended his stance, saying public sector pay had "raced ahead" of the private sector after the economic crash in 2008. |
| While in terms of salary alone, that gap had now closed, he continued, when "very generous" pension contributions were taken into account, the 10% disparity between public and private salaries was a "simple fact". | While in terms of salary alone, that gap had now closed, he continued, when "very generous" pension contributions were taken into account, the 10% disparity between public and private salaries was a "simple fact". |
| Asked about a Sunday Times report claiming he had said the former were "overpaid", the chancellor insisted he was not going to discuss what was and wasn't said in a cabinet meeting. | Asked about a Sunday Times report claiming he had said the former were "overpaid", the chancellor insisted he was not going to discuss what was and wasn't said in a cabinet meeting. |
| "I do think on many fronts it would be helpful if my colleagues - all of us - focused on the job at hand," he said. | "I do think on many fronts it would be helpful if my colleagues - all of us - focused on the job at hand," he said. |
| He added: "If you want my opinion, some of the noise is generated by people who are not happy with the agenda that I have, over the last few weeks, tried to advance, of ensuring that we achieve a Brexit which is focused on protecting our economy, protecting our jobs and making sure that we can have continued rising living standards in the future." | He added: "If you want my opinion, some of the noise is generated by people who are not happy with the agenda that I have, over the last few weeks, tried to advance, of ensuring that we achieve a Brexit which is focused on protecting our economy, protecting our jobs and making sure that we can have continued rising living standards in the future." |
| Mr Fox, one of the leading Brexit campaigners in the cabinet, rejected press reports he had clashed with Mr Hammond over the EU, saying the two had a "very good working relationship". | |
| "I don't know where the briefing is coming from, but I do know it's got to stop," he said. | "I don't know where the briefing is coming from, but I do know it's got to stop," he said. |
| He added: "I think there's too much self-indulgence, and I think people need to have less prosecco and have a longer summer holiday." | |
| Former Tory leader Iain Duncan Smith criticised those briefing against Prime Minister Theresa May, saying: "Just for once shut up, for God's sake, and let everybody else get on with the business of governing." | |
| Pay gap | Pay gap |
| Pay rises for most public sector workers are set by independent pay review bodies, but have effectively been capped at 1% each year since 2013. | Pay rises for most public sector workers are set by independent pay review bodies, but have effectively been capped at 1% each year since 2013. |
| Before that, there was a two-year freeze on pay for all but the lowest-paid workers. | Before that, there was a two-year freeze on pay for all but the lowest-paid workers. |
| The government has come under pressure over the policy since the general election, with some Conservative ministers speaking out in favour of lifting the cap. | The government has come under pressure over the policy since the general election, with some Conservative ministers speaking out in favour of lifting the cap. |
| Shadow chancellor John McDonnell said Labour would spend £4bn on ending the cap, insisting this would be enough to give a real-terms increase for public sector workers. | Shadow chancellor John McDonnell said Labour would spend £4bn on ending the cap, insisting this would be enough to give a real-terms increase for public sector workers. |
| Pay review bodies would be asked to come up with an "honest judgement" and a Labour government would follow their advice, he said. | Pay review bodies would be asked to come up with an "honest judgement" and a Labour government would follow their advice, he said. |
| On Pienaar's Politics on BBC Radio 5 live, First Secretary of State Damian Green was asked whether Mr Hammond said public sector workers were "overpaid". | |
| "I'm not going to report from inside cabinet because cabinet ministers should not do that," he said. | |
| "But the chancellor does not think that public sector workers are overpaid - the government obviously respects the millions of people who do really important jobs." |