Chancellor announces 1% pay cap for public sector wages

PUBLIC sector pay rises will be frozen at 1% for the next four years, Chancellor George Osborne announced in his emergency summer budget.

While police officer pay is now agreed through a Police Remuneration Review Body, this is likely to provide an accurate yardstick of what police officers can expect.

Mr Osborne said the budget “sets out a plan for Britain for the next five years”.

During his speech, the chancellor scrapped student grants, froze benefits and cut billions from tax credits and other welfare payments.

He said he would cut the deficit at same pace as the Government did in the last Parliament. But it would be “without a rollercoaster ride in public spending”.

Mr Osborne said he would spread the £12 billion in welfare cuts promised in the Conservative election manifesto over three years instead of two.

He also cut housing benefit for most people aged under 21.

He described the NHS as the Government’s “priority”. As promised during the election campaign, it will receive £8 billion on top of the extra £2 billion provided this year, or £10 billion a year more by 2020.

Mr Osborne opened his budget speech by saying: “This is a Budget that puts security first, and recognises the hard-working British people.”

Chancellor Osborne did promise “additional resources to defence and security of the realm”.

Osborne said during the budget that he will meet the Nato pledge to spend 2% of national income on defence every year of this decade.

“While those commitments don’t come cheap, the alternatives are far more costly,” he said.

He “guaranteed” a real increase in the defence budget every year, and a joint security fund of £1.5 billion a year by the end of the Parliament.

But bizarrely there was no mention of the police in this.