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David Cameron warns MPs' pay body not to insist on 11% hike David Cameron warns MPs' pay body not to insist on 11% hike
(about 1 hour later)
David Cameron has warned the Independent Parliamentary Standards Authority (IPSA) not to insist on proposals to increase MPs' pay by 11%. David Cameron has warned the Independent Parliamentary Standards Authority (Ipsa) not to insist on proposals to increase MPs' pay by 11%.
At his weekly Commons question session, the PM said it would be "simply unacceptable" to boost pay by £7,600 to £74,000 in 2015.At his weekly Commons question session, the PM said it would be "simply unacceptable" to boost pay by £7,600 to £74,000 in 2015.
Labour accused Mr Cameron of kicking the issue into the long grass and called for immediate cross-party talks.Labour accused Mr Cameron of kicking the issue into the long grass and called for immediate cross-party talks.
But Downing Street played down the prospect of any imminent action.But Downing Street played down the prospect of any imminent action.
No final decision on MPs' pay was due until the middle of 2015, after the next general election, Mr Cameron's spokesman told reporters after prime minister's questions.No final decision on MPs' pay was due until the middle of 2015, after the next general election, Mr Cameron's spokesman told reporters after prime minister's questions.
"There is a process, let the process run its course," he added."There is a process, let the process run its course," he added.
IPSA was established in the wake of the MPs' expenses scandal, and is charged with administering and regulating MPs' expenses.IPSA was established in the wake of the MPs' expenses scandal, and is charged with administering and regulating MPs' expenses.
It was also tasked with setting MPs' salary levels independently of Parliament and government to end the conflict of interest that had been attached to MPs having the final say on their own pay.It was also tasked with setting MPs' salary levels independently of Parliament and government to end the conflict of interest that had been attached to MPs having the final say on their own pay.
'Unacceptable''Unacceptable'
Responding to a question from Labour leader Ed Miliband in the Commons, Mr Cameron said: "I think it would be wrong for MPs to get a big pay rise at a time of public sector pay restraint. All three party leaders agree on that, we have all made that point to Ipsa.Responding to a question from Labour leader Ed Miliband in the Commons, Mr Cameron said: "I think it would be wrong for MPs to get a big pay rise at a time of public sector pay restraint. All three party leaders agree on that, we have all made that point to Ipsa.
"I think we should be clear that what they have said is not a final recommendation."I think we should be clear that what they have said is not a final recommendation.
"Let me briefly make three points. First, the idea of an 11% pay rise in one year at a time of pay restraint is simply unacceptable."Let me briefly make three points. First, the idea of an 11% pay rise in one year at a time of pay restraint is simply unacceptable.
"Secondly, Ipsa do need to think again and unless they do so, I don't think anyone will want to rule anything out. No-one wants to go back to MPs voting on their own pay but we have got to have a process and an outcome that can build public confidence."Secondly, Ipsa do need to think again and unless they do so, I don't think anyone will want to rule anything out. No-one wants to go back to MPs voting on their own pay but we have got to have a process and an outcome that can build public confidence.
"Third, in my view, I think this should all be accompanied with a cut in the cost of politics.""Third, in my view, I think this should all be accompanied with a cut in the cost of politics."
Mr Miliband, who has called for cross-party talks on how to respond to the proposals, said it would be wrong for MPs to receive a pay rise many times the rate of inflation, while ordinary families faced a "crisis in their living standards".Mr Miliband, who has called for cross-party talks on how to respond to the proposals, said it would be wrong for MPs to receive a pay rise many times the rate of inflation, while ordinary families faced a "crisis in their living standards".
'Crisis''Crisis'
He asked the PM to "agree with me that we should not let this hang around as an issue until after the general election, hanging over the trust in politics".He asked the PM to "agree with me that we should not let this hang around as an issue until after the general election, hanging over the trust in politics".
"Waiting and seeing won't work and we do have to get together to deal with this," the Labour leader said."Waiting and seeing won't work and we do have to get together to deal with this," the Labour leader said.
"The reason why this is not the right time for this pay rise is because most people are going through the biggest cost of living crisis in a generation.""The reason why this is not the right time for this pay rise is because most people are going through the biggest cost of living crisis in a generation."
Labour sources said they want urgent talks involving IPSA head Sir Ian Kennedy, Mr Cameron, Deputy PM Nick Clegg and Mr Miliband - possibly later on Wednesday. Labour sources said they want urgent talks involving Ipsa head Sir Ian Kennedy, Mr Cameron, Deputy PM Nick Clegg and Mr Miliband - possibly later on Wednesday.
The pay rise is unacceptable and cannot go ahead, they added, accusing the PM of kicking the issue into the long grass. IPSA cannot ignore public opinion on the issue and must take it into account, they argued. The pay rise is unacceptable and cannot go ahead, they added, accusing the PM of kicking the issue into the long grass. Ipsa cannot ignore public opinion on the issue and must take it into account, they argued.
IPSA is expected to announce its proposals on pay, as well as changes to pensions contributions and parliamentary allowances, on Thursday. Ipsa is expected to announce its proposals on pay, as well as changes to pensions contributions and parliamentary allowances, on Thursday.
Many backbenchers have criticised the planned pay rise but others, including former Labour foreign secretary Jack Straw, have warned that defying IPSA over the issue will threaten the watchdog's future and give the impression Parliament wants to set its own pay and expenses again. Many backbenchers have criticised the planned pay rise but others, including former Labour foreign secretary Jack Straw, have warned that defying Ipsa over the issue will threaten the watchdog's future and give the impression Parliament wants to set its own pay and expenses again.