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MPs' pay: rejection of Ipsa proposals would be a disaster, watchdog warns MPs' pay: rejection of Ipsa proposals would be a disaster, watchdog warns
(about 3 hours later)
Sir Ian Kennedy, the chair of the independent watchdog on MPs' pay, has warned it would be a disaster if political pressure led to parliament rejecting his package of proposals including an 11% pay rise.Sir Ian Kennedy, the chair of the independent watchdog on MPs' pay, has warned it would be a disaster if political pressure led to parliament rejecting his package of proposals including an 11% pay rise.
Writing in the Times, he said: "I know there is a tension between the reasoning and the politics, but we were asked to fix the problem for a generation, not for a news cycle. That is what we have done." . Writing in the Times, he said: "I know there is a tension between the reasoning and the politics, but we were asked to fix the problem for a generation, not for a news cycle. That is what we have done.
"The alternative approach takes us back to the days of political deals, with scandal never far away. I can't believe anyone seriously believes that is the way forward.""The alternative approach takes us back to the days of political deals, with scandal never far away. I can't believe anyone seriously believes that is the way forward."
He insisted the package would not cost the taxpayer a penny more since other aspects of MPs' remuneration including pensions would be made less generous. He said the package would not cost the taxpayer a penny more since other aspects of MPs' remuneration including pensions would be made less generous.
He writes: "We are in no doubt MPs' pay needs a one-off uplift. Whatever measure you choose - including international comparisons and historic trends - they all lead to the same conclusion: MPs' pay has fallen behind."He writes: "We are in no doubt MPs' pay needs a one-off uplift. Whatever measure you choose - including international comparisons and historic trends - they all lead to the same conclusion: MPs' pay has fallen behind."
He insists the Independent Parliamentary Standards Authority (Ipsa) would not be independent if it bowed to the will of parliament. He says the Independent Parliamentary Standards Authority (Ipsa) would not be independent if it bowed to the will of parliament.
The tone of his remarks suggests he will either be forced to resign or lose public confidence if the political parties insist they will not allow them to take the pay rise.The tone of his remarks suggests he will either be forced to resign or lose public confidence if the political parties insist they will not allow them to take the pay rise.
Some MPs are considering making clear that if a pay rise is forced on them, they will donate the money to charity. That, however, will require a degree of independent checking and transparency. Some MPs are considering making clear that if a pay rise is forced on them, they will donate the money to charity. That, however, will require a degree of independent checking and transparency.
Kennedy urges voters to look not just at the headline pay rise but the planned changes to pensions, travel allowances and resettlement payments, which are being officially published on Thursday morning.Kennedy urges voters to look not just at the headline pay rise but the planned changes to pensions, travel allowances and resettlement payments, which are being officially published on Thursday morning.
On Wednesday the prime minister hinted that he could scrap Ipsa in the coming years if it continued with its plans. The deputy prime minister, Nick Clegg, said it would be bad to go back to the old days of MPs determining their own pay, but made it clear the three main party leaders would not allow such a big increase to go ahead.
However, a political row broke out as Labour's leader, Ed Miliband, said the prime minister was not doing enough to resolve the uncertainty and demanded an immediate meeting on Thursday with Cameron, Nick Clegg and Kennedy. Speaking on LBC 97.3 radio, on Thursday morning, he said: "We are all – unusually in politics – as one on this. We think it is incomprehensible and wholly inappropriate for MPs, who are at the end of the day public servants paid for by taxpayers, to have an increase in their pay which is completely out of line with the pay restraint that exists for millions of other people in the public sector."
On Wednesday, David Cameron hinted that he could scrap Ipsa in the coming years if it continued with its plans.
But a political row broke out as Labour's leader, Ed Miliband, said the prime minister was not doing enough to resolve the uncertainty and demanded an immediate meeting on Thursday with Cameron, Clegg and Kennedy.
On the eve of Ipsa's report, Cameron said the prospect of a large pay rise for MPs was "simply unacceptable" at a time when public-sector workers had seen their pay increase by less than 1% a year during the course of this parliament.On the eve of Ipsa's report, Cameron said the prospect of a large pay rise for MPs was "simply unacceptable" at a time when public-sector workers had seen their pay increase by less than 1% a year during the course of this parliament.
He demanded that Ipsa thought again about its proposals to increase the basic MP salary to about £76,000, and he made clear that he had not ruled out altering the system if that did not happen. He demanded Ipsa thought again about its proposals to increase the basic MP salary to about £76,000, and he made clear that he had not ruled out altering the system if that did not happen.
"First, the idea of an 11% pay rise in one year at a time of pay restraint is simply unacceptable," he told the Commons. "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.""First, the idea of an 11% pay rise in one year at a time of pay restraint is simply unacceptable," he told the Commons. "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."
In a blogpost, Andrew McDonald, chief executive of Ipsa, called for people to look at research on MP remuneration instead of "shouting". He said the proposals would involve pension and expenses arrangements, not just pay, and claimed the public had a "more nuanced and split opinion" than many politicians suspected.In a blogpost, Andrew McDonald, chief executive of Ipsa, called for people to look at research on MP remuneration instead of "shouting". He said the proposals would involve pension and expenses arrangements, not just pay, and claimed the public had a "more nuanced and split opinion" than many politicians suspected.
Previously Downing Street had said the issue of MPs' pay "did not arise" until 2015 when there would be a review of Ipsa's decision, suggesting Cameron could be hoping that the dispute dies down until after the next election.Previously Downing Street had said the issue of MPs' pay "did not arise" until 2015 when there would be a review of Ipsa's decision, suggesting Cameron could be hoping that the dispute dies down until after the next election.
However, Miliband warned the prime minister not to kick it into the long grass. In his letter to Cameron, he said: "The public expect us to resolve this now and not wait until 2015. It only undermines confidence and trust in our political system if the uncertainty about MPs' pay is allowed to continue." But Miliband warned Cameron not to kick it into the long grass. In his letter to the prime minister, he said: "The public expect us to resolve this now and not wait until 2015. It only undermines confidence and trust in our political system if the uncertainty about MPs' pay is allowed to continue."
Cameron has not so far agreed to official cross-party talks, but told the Labour leader his door was "always open" on the issue.Cameron has not so far agreed to official cross-party talks, but told the Labour leader his door was "always open" on the issue.
The prime minister's rejection of Ipsa's likely recommendation was met with a frosty silence from his backbenchers in the Commons.The prime minister's rejection of Ipsa's likely recommendation was met with a frosty silence from his backbenchers in the Commons.
The Tory MP Peter Lilley, a former minister, suggested Cameron revived boundary reforms blocked by the Liberal Democrats if he wanted to bring down the cost of politics; that could lead to fewer, better-paid, MPs.The Tory MP Peter Lilley, a former minister, suggested Cameron revived boundary reforms blocked by the Liberal Democrats if he wanted to bring down the cost of politics; that could lead to fewer, better-paid, MPs.
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