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First Minister: Economic uncertainties for Wales need to be clarified

News | Richard Gurner | Published: 11:00, Thursday December 8th, 2011.

First Minister Carwyn Jones has called on the UK Government to clarify aspects of the UK Government’s plans following the Chancellor’s Autumn Statement.

In a letter to the Secretary of State for Wales, the First Minister has asked for clarity on a number of issues, including the amount of money the Welsh Government is to due to receive, as a consequential to the various elements of spending in England.

Commenting on the letter, the First Minister said: “The Chancellor’s statement last week confirmed our deepest worries on the UK Government’s approach to the economy – growth has stalled and families across Wales are being financially squeezed. It has now been eight days since the Chancellor revealed his Autumn Statement and we are no clearer on how his plans will affect the Welsh Government’s budget.

“I have therefore written directly to the Secretary of State, asking her for urgent clarification on how much money is due to Wales.”

The First Minister has again expressed his concern over the Chancellor’s reference to exploring “how public sector pay can be made more responsive to local labour markets”.

The First Minister added: “These proposals are deeply worrying and look like the start of a slippery slope towards lower salaries in Wales. Equal pay for equal work in all parts of the United Kingdom is a long-standing and fundamental guiding principle of public sector values. Where there are disparities in the cost of living this has been recognised through mechanisms such as the London Weighting Allowance.

“I am committed to a single Home Civil Service underpinned by common values and equality of treatment in employment terms and conditions and I have asked the Secretary of State for assurances that she will oppose any moves towards lower pay for the public services in Wales, compared to areas such as London. The Welsh Government will resist any move to cut the pay of Wales’ 300,000 hard pressed public sector workers.”

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