Link MPs’ pay to GDP, says UK business secretary

{"text":[[{"start":10.24,"text":"Britain’s business secretary has called for MPs’ pay to be directly linked to GDP, to incentivise Westminster into prioritising economic growth."}],[{"start":20.689999999999998,"text":"Peter Kyle suggested a change in remit for the Independent Parliamentary Standards Authority — the body that oversees MPs’ salaries — as he called for more government departments to focus on boosting growth. "}],[{"start":35.629999999999995,"text":"He told the FT: “I would really love for IPSA to peg MPs and ministerial pay to our growth rates as a country, as opposed to what it is at the moment, which is a slightly byzantine formula. I’m serious. I would love them to.”"}],[{"start":52.61,"text":"Asked whether Labour MPs would appreciate the suggestion, Kyle said: “They’re not as enthusiastic as I am but . . . if we get the economy growing at, for example, 5 per cent we would be fulfilling our potential.”"}],[{"start":68.05,"text":"Businesses have often expressed frustration over the years at local MPs trying to block or modify potentially growth-boosting projects, from housing developments to energy and transport infrastructure. "}],[{"start":82.08,"text":"At present the salary of MPs, which is currently £93,904 a year, rises in line with various metrics including changes to average earnings in the public sector. "}],[{"start":95.82,"text":"Kyle complained about a lack of focus on growth inside government departments. “Sometimes, I’m not always convinced [growth] is the number one mission of every government department . . . I’ve not had the impression it is the number one target of our body politic.”"}],[{"start":112.50999999999999,"text":"Darren Jones, Cabinet Office secretary, set out plans this week to introduce higher bonuses for high-performing civil servants, as well as making it easier to sack those who fail to deliver. "}],[{"start":null,"text":"

"}],[{"start":126.50999999999999,"text":"James Meadway, a former Labour economics adviser, questioned the wisdom of Kyle’s suggestion on MPs’ pay."}],[{"start":134.66,"text":"“This is a daft gimmick that might flatter some MPs’ self importance but the hard truth is little they do has much direct impact on GDP,” said Meadway."}],[{"start":146.49,"text":"“And mostly it shouldn’t — government is about more than just economic growth. Sometimes, like lockdowns or Brexit, it may even be about measures that reduce growth. It’s hard to take the suggestion seriously.”"}],[{"start":162.69,"text":"But Chris Curtis, co-chair of the Labour Growth Group caucus of MPs, welcomed the move: “It’s the right thing to restore trust in politics for the public to see MPs linking their pay to the improvements in the economy we are aiming to deliver.”"}],[{"start":null,"text":""}],[{"start":179.54,"text":"Dame Harriett Baldwin, shadow business minister, said: “Rather than opining on things he can’t control, the business secretary should be applying pressure on the chancellor to come up with a plan to prevent her sharp hikes in business rates on retail and hospitality, which are causing unemployment, weak growth and business failures.”"}],[{"start":202.53,"text":"Joanna Marchong, head of communications and external affairs at the Adam Smith Institute, said: “Linking MPs’ pay to GDP growth sounds appealing, but it’s largely wishful thinking."}],[{"start":216.37,"text":"“Labour’s newest line on prioritising growth is a mere step in the right direction . . . Britain desperately needs a genuinely pro-growth agenda, including lower taxes, lighter regulation and planning reform."}],[{"start":230.5,"text":"“Unless ministers tackle the structural barriers holding the economy back, tying their pay to GDP will change very little.”"}],[{"start":240.3,"text":"The IPSA said the body carried out regular consultations with the public on how to set pay for MPs. “In general, any change to MPs’ pay is based on a number of metrics, including national and international statistics on pay and reward, our own principles and the wider economic context,” it added. "}],[{"start":270.32,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1769393631_8412.mp3"}