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George Osborne: 10% pay rise for MPs is unacceptable George Osborne: 10% pay rise for MPs is unacceptable
(about 1 hour later)
George Osborne has insisted a 10% pay hike for MPs is unacceptable after the Commons watchdog reiterated its determination to push ahead with the rise. George Osborne has said a 10% pay rise for MPs is unacceptable, after the Commons watchdog reiterated its determination to push ahead with the increase.
The chancellor suggested the move would be blocked after the general election, stressing that the Independent Parliamentary Standards Authority's (Ipsa) position was not final.The chancellor suggested the move would be blocked after the general election, stressing that the Independent Parliamentary Standards Authority's (Ipsa) position was not final.
The comments, in an interview with the BBC's Andrew Marr show, came after new Ipsa chief executive, Marcial Boo, reiterated its commitment to the increase from £67,000 to £74,000. The comments, in an interview on the BBC's Andrew Marr Show, came after new Ipsa chief executive, Marcial Boo, reiterated its commitment to the increase from £67,000 to £74,000.
He said the economy was recovering and politicians should not be paid a "miserly amount". Boo said the economy was recovering and politicians should not be paid a "miserly amount".
"All the evidence points towards MPs' salaries having fallen behind," he told the Sunday Telegraph."All the evidence points towards MPs' salaries having fallen behind," he told the Sunday Telegraph.
He said some viewed the £74,000 figure as "at the low end", and failure to pay "fair" rates would make it harder to recruit good candidates for parliament in future. He said some viewed the £74,000 figure as "at the low end", and failure to pay fair rates would make it harder to recruit good candidates for parliament in future.
"This is an important job, the job of an MP," Boo said. "They are there to represent us all, to form laws, to send young people to war."This is an important job, the job of an MP," Boo said. "They are there to represent us all, to form laws, to send young people to war.
"It is not an easy thing to do. We want to have good people doing the job and they need to be paid fairly. Now, that's not paid in excess but it's not being paid a miserly amount either."It is not an easy thing to do. We want to have good people doing the job and they need to be paid fairly. Now, that's not paid in excess but it's not being paid a miserly amount either.
"It's our job to reach the judgment of what the right amount is. There are lots and lots of professionals in public life and in the private sector who earn a lot more than that – so it is not an excessive amount of money at all.""It's our job to reach the judgment of what the right amount is. There are lots and lots of professionals in public life and in the private sector who earn a lot more than that – so it is not an excessive amount of money at all."
There was an outcry when Ipsa announced the rise last year, with David Cameron, Ed Miliband and Nick Clegg arguing it was unacceptable at a time when public sector rises were capped at 1%.There was an outcry when Ipsa announced the rise last year, with David Cameron, Ed Miliband and Nick Clegg arguing it was unacceptable at a time when public sector rises were capped at 1%.
MPs are already due a 1% increase to £67,731 next April and under Ipsa's plan it will go up again a month later to £74,000.MPs are already due a 1% increase to £67,731 next April and under Ipsa's plan it will go up again a month later to £74,000.
The watchdog has said it will conduct one further review of the pay rise after the election – as it is legally obliged to do – but Boo made clear its conclusions were unlikely to shift. The watchdog has said it will conduct a further review of the pay rise after the election – as it is legally obliged to do – but Boo made clear its conclusions were unlikely to shift.
"We were allowing for any change in economic circumstances," he said."We were allowing for any change in economic circumstances," he said.
"At that time we had only just emerged from recession, it wasn't quite clear we were going to have the growth that we have got now as a country, so we left the option open to change the position."At that time we had only just emerged from recession, it wasn't quite clear we were going to have the growth that we have got now as a country, so we left the option open to change the position.
"As of now, September, it doesn't look like there is any major economic factor that would change the determination that we reached in 2013.""As of now, September, it doesn't look like there is any major economic factor that would change the determination that we reached in 2013."
He added: "Parliament as a whole has created an independent body to set MPs' pay. We have gone through the process in a really rigorous way. It is not an arbitrary figure that we have come up with.He added: "Parliament as a whole has created an independent body to set MPs' pay. We have gone through the process in a really rigorous way. It is not an arbitrary figure that we have come up with.
"Obviously, it is for parliament to decide whether they want to take back responsibility for setting their own pay. I don't believe that's right."Obviously, it is for parliament to decide whether they want to take back responsibility for setting their own pay. I don't believe that's right.
"I think we are in a better position as a country now when we have an independent, transparent regulator that is tasked with determining MPs' remuneration."I think we are in a better position as a country now when we have an independent, transparent regulator that is tasked with determining MPs' remuneration.
"This is the number that we've come up with and we talked both to the public and to MPs about it."This is the number that we've come up with and we talked both to the public and to MPs about it.
"But if parliament wants to change its mind and to change our remit, then that's clearly for them.""But if parliament wants to change its mind and to change our remit, then that's clearly for them."
Boo – whose own £120,000 salary is £10,000 more than that of his predecessor – insisted a change in the law would be needed to prevent Ipsa following through on its proposals. Boo – whose own £120,000 salary is £10,000 more than that of his predecessor – said a change in the law would be needed to prevent Ipsa following through on its proposals.
Another potential block to the pay rise was removed over the summer when the Ipsa chairman, Sir Ian Kennedy, was reappointed for another 18 months, meaning he will remain in post after the general election.Another potential block to the pay rise was removed over the summer when the Ipsa chairman, Sir Ian Kennedy, was reappointed for another 18 months, meaning he will remain in post after the general election.
However, Osborne promised that the issue would be tackled. However, Osborne promised the issue would be tackled.
"I don't think it is acceptable at a time when there is continuing pay restraint in the public sector that MPs would receive such a big increase," he said."I don't think it is acceptable at a time when there is continuing pay restraint in the public sector that MPs would receive such a big increase," he said.
"But this is not the final verdict, this is not the final report. There will be a report after the election and that's when we are going to have to tackle this issue.""But this is not the final verdict, this is not the final report. There will be a report after the election and that's when we are going to have to tackle this issue."