Economists face fury over local pay letter

The letter, published in a national newspaper this morning and signed by 25 economists from universities across England, says it “is time for Government to act” and end national pay bargaining.

The Treasury is poised to publish its proposals on the hugely inflammatory issue within weeks.

Chancellor George Osborne believes local pay deals will boost the private sector, but the plan is vehemently opposed by Liberal Democrats as well as backbench Tory MPs in the North.

At their party conference next week, the Lib Dems will debate a motion to resist any Government effort to introduce local pay deals.