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Health Pay Plans 'Could Threaten Cornwall's Economic Recovery'

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7:04am 29th October 2012

There is a warning Cornwall's economic recovery could be undermined if the Duchy's doctors and nurses are forced to work longer for less.

Treliske is one of around twenty hospitals considering bringing in regional pay in the southwest. Officials say the proposals under consideration aim to bring "greater security for health services and staff."

They are worried jobs could have to go unless they can find a way of saving money.

But now a group of sixty leading academics has written to The Times warning consumers will have less money to spend.

They say that there is "no convincing evidence" local pay rates would boost the economic performance of regional economies.

Instead they are concerned it would reduce consumer spending power and undermine businesses in less prosperous regions of the UK. The academics fear the result of a regional pay policy would "aggravate geographical, economic and social inequalities."

TUC General Secretary Brendan Barber said: “This is yet more evidence that the government’s plans for regional or local pay are not just unfair, but ill-thought out. They will end up costing local economies dearly as public sector workers in poorer regions rein in their spending.

“The Chancellor should take the views of these many academic experts seriously and put a stop for once and for all to these flawed and counterproductive proposals.

“Introducing a postcode pay lottery which would effectively cut the wages for nurses, teachers and dinner ladies in poorer parts of the UK won’t boost regional economies one bit. Instead it risks doing irreparable harm to the whole economy and to our public services.”

7:04am 29th October 2012

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