HISTORIC PRESS RELEASE : Pay increases must be affordable if we are to have long term prosperity – Alistair Darling [January 1998]

The press release issued by HM Treasury on 14 January 1998.

“Pay increases must be affordable right across the board, from boardroom to shop floor, in both the private and public sectors, if we are to bring about the long term stable growth and prosperity we all want to see”.

That was the clear message from Alistair Darling, Chief Secretary to the Treasury, speaking tonight at an event organised by Ernst and Young.

He added:

“Since we took office we have begun to put in place the building blocks we need to bring about the long term prosperity we all want to see.

Our strategy is based around building a stable framework for fiscal and monetary policy, encouraging investment in our economic infrastructure, the education and skills of our workforce and rebuilding the welfare state around the work ethic.

This means we have to take tough decisions now. We are not going to repeat the mistakes of the past, where the economic signals were misunderstood and an unsustainable boom led to bust.

Central to this aim is the need to make sure pay increases are fair and affordable, in both the public and private sectors.

We are determined to deliver long term growth and prosperity.”