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DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTY'S GOVERNMENT

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July1983

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CABINET TOP

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SALARY REVIEW BODY REPORT ON TOP SALARIES-

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Note by t h e S e c r e t a r y o f t h e C a b i n e t

The one r e ^ ^ i n i n g Review Body Report on which t h e Government has n o t y e t announced a d e c i s i o n i s Report No 19 o f t h e Top S a l a r i e s Review Body .(TSRB)

°n t h e pay o f s e n i o r c i v i l s e r v a n t s (Under S e c r e t a r i e s and a b o v e ) ,

s e n i o r o f f i c e r s i n ^ h e armed f o r c e s ( M a j o r General and e q u i v a l e n t and above)

and t h e j u d i c i a r V ? | )

.

EARLIER DECISIONS 2-

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The Review Body 1•

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a l r e a d y announced a r e as f o l l o w s :

Armed Forces Pay^fte^ew Body (AFPRB)

Recommendations: new ^ ^ Q j y o f pay f o r servicemen and women up t o

and i n c l u d i n g t h e rank o f ^ s t m s j a d i e r and e q u i v a l e n t a p p l i c a b l e f r o m

1 A p r i l 1983, e s t i m a t e d tsiOttcLW.2 p e r c e n t t o t h e pay b i l l f o r

D e c i s i o n announced on 12 May T98-3^^recommendations accepted i n

f u l l f r o m 1 A p r i l 1983.
2.

Doctors and D e n t i s t s Review B~o^^J^RB)

R e c o m m e n d a t i o n s : a n average i n c r e a a e ^ D f 7 p e r c e n t over t h e 1982 recommended f i g u r e s ( i n c l u d i n g some s p e c i a l payments f o r j u n i o r d o c t o r s and d e n t i s t s ) t o t a k e e f f e c t f r o m 1 A p r i l 1983. The abatement o f t h e i r recommendations made i n amounting t o 2.7 p e r c e n t , t o be made good f r o m t h e sameudaDg.

YpS$\

D e c i s i o n announced on 12 May 1983: 7 p e r cen epted w i t h e f f e c t f r o m 1 A p r i l 1983; 2.7 p e r c e n t aba^irfe'nt. t o be made

good on 1 January 1984. l ' y y \ 3.

TSRB Report No 20 on MPs and M i n i s t e r s



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Recommendation: i n c r e a s e a f 31 per c e n t f o r MPs and oE^aVaj>*Kl 30 p e r c e n t f o r most M i n i s t e r s (47 p e r c e n t f o r C a b i n e t M£aX^£rs)

f r o m June

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Outcome o f . P a r l i a m e n t a r y debate on 19 J u l y 1983; increases f o r

^ °f 5.5 p e r c e n t f r o m June 1983; 5.2 p e r cent f r o m January 1984; 5.0 p e r c e n t f r o m January 1985; 4.7 p e r c e n t f r o m January 1986; 4.5 p e r c e n t f r o m January 1987; and a f u r t h e r i n c r e a s e on


of a c i v i l s e r v i c e s a l a r y c u r r e n t l y a t o r about £18,500. M i n i s t e r s ' / < \ \ s a l a r i e s t o be i n c r e a s e d i n t h e range 4.0-5.4 p e r cent f r o m J u l y 1983, \ C v ^ a n d by t h e same percentages as MPs' s a l a r i e s f r o m January 1984 t o s

:

REC8MM2^TIONS OF TSRB REPORT NO 19

3TSml-g£>ort No 19 recommended w i t h e f f e c t f r o m 1 A p r i l 1983 an

o v e r a l l l i v ^ W i n c r e a s e o f 6.9 p e r c e n t f o r t h e t o p s a l a r y groups. I n

a d d i t i o n MW/TSRB s t r o n g l y recommended t h a t t h e abatement o f t h e i r 1982

recommendations, d a t i n g back o r i g i n a l l y t o an abatement made i n 1980 and

c u r r e n t l y amounting t o s l i g h t l y l e s s than 5 p e r c e n t , s h o u l d a l s o be made

good w i t h e f f e c t f r o m 1 A p r i l 1983.

EARLIER D I S C U S S I C ^ Y ) ) T H E CABINET 4

When t h e Cabine(^c^Asidered TSRB Report No 19 on 10 May 1983 ( C C ( 8 3 ) 17th C o n c l u s i o n ^ M n u t e 2 ) , the f o l l o w i n g p o i n t s were made: . i. t h e r e were soum^Ji^vagement reasons f o r i m p l e m e n t i n g t h e

recommendations i n TSRJyRSport No 19 i n f u l l and as soon as

possible; \V_^v

ii. s i n c e t h e TSRB abatB^rfhN.in 1982 had been j u s t i f i e d by r e f e r e n c e t o t h e DDRB abarOTjeV)^ t h e r e was a s t r o n g case i n p r i n c i p l e f o r c o n s i s t e n t t r e ^ m g p t o f t h e recommendations o f the two R e p o r t s ; (J^ $\ iii. t h e r e would be considerable/advantage i n g e t t i n g r i d o f

the TSRB abatement b e f o r e t h e 1 9 8 ^ J f f i ^ r t which c o u l d t h e n

s t a r t from a clean s l a t e ; ^ } //y

iv. t h e Government would be criticised f o r announcing an i n c r e a s e f o r t o p s a l a r i e s groups a t t h e b e g i n n i n g o f a General E l e c t i o n campaign; s i n c e d e c i s i o n s were t o be d e f e r r e d on TSRB Report No 20 r e l a t i n g t o MPs and MinipS^rs, t h e p r o p o s a l s i n both TSRB Reports s h o u l d be c o n s i d e r e d aj(terCthe E l e c t i o n ; any i n c r e a s e i n r e s p e c t o f 1983 f o r t o p s a l a r y y ^ r l J y p s would be backdated t o 1 A p r i l . \^x/> 0p

T l O N S FOR CONSIDERATION

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The Prime M i n i s t e r has i n s t r u c t e d me t o s e t o u t f o r consecration by

Cabinet two a l t e r n a t i v e o p t i o n s . Both o p t i o n s a r e desMH^dyjo ensure h a t i n A p r i l 1984 t h e TSRB i s a b l e t o make reconimendations Xfe*^£tte P s a l a r y groups w i t h o u t h a v i n g t o deal w i t h any b a c k l o g , and/wi^K> e r e f o r e be on t h e same f o o t i n g as the AFPRB and t h e DDRB. T h V v & ^ o n s as f o l l o w s :

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T h i s i s based on t h e p r i n c i p l e o f c o n s i s t e n c y w i t h t h e t r e a t m e n t

of t h i s y e a r ' s DDRB Report, The c u r r e n t y e a r i n c r e a s e o f

6*9 p e r c e n t would be p a i d f r o m 1 A p r i l 1983. The abatement o f

j u s t under 5 p e r c e n t would be r e s t o r e d w i t h e f f e c t f r o m

1 January 1984. The c o s t w i t h i n t h e f i n a n c i a l y e a r 1983-84 w o u l d

^ \ \ \ \ b e £4.1 m i l l i o n (8.2 p e r c e n t ) as compared w i t h a c o s t o f \>y^ff-^> m i l l i o n (11.9 p e r c e n t ) i f t h e TSRB recommendations were t o be / f t $ u X d in full. e

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T h i & X w l l o w s the p r i n c i p l e o f c o n t a i n i n g t h e percentage increase

i n c ^ ^ y i t h i n t h e c u r r e n t f i n a n c i a l year a t a p p r o x i m a t e l y t h e

same W y e l as t h e p e r c e n t a g e i n c r e a s e i n t h e c o s t o f MPs' pay

w i t h i n ^ c h e c u r r e n t f i n a n c i a l year. The i n c r e a s e o f 6.9 p e r c e n t

f o r t o p s a l a r y groups would be p a i d f r o m 1 August 1983 r a t h e r

than 1 A p r i l 19-83. The abatement o f j u s t under 5 p e r c e n t w o u l d

be r e s t o r e d M € n Y \ e f f e c t f r o m 1 January 1984. The c o s t w i t h i n t h e

f i n a n c i a l yes^1>8-3-84 would be £2.9 m i l l i o n (5.85 p e r c e n t ) ;

t h e e q u i v a l e n t / F i g u r e f o r MPs ( a l l o w i n g f o r a 5.5 p e r c e n t i n c r e a s e

f r o m 22 June 19s^aprd) a f u r t h e r 5.2 p e r c e n t i n c r e a s e f r o m

1 January 1984) i ^ J U ^ p e r c e n t . The 1983-84 c o s t o f t h i s o p t i o n

i s l e s s t h a n h a l f 1 ^ ^ 6 3 - 8 4 c o s t o f i m p l e m e n t i n g t h e TSRB

recommendations i n f o d ^ X ^

°The t a b l e a t t a c h e d g i v a ^ / a e ^ a i l s o f t h e p r e c i s e s a l a r y i n c r e a s e s f o r

the v a r i o u s grades and o f f i c e s ^ ^ ^ i t h e r o f these two o p t i o n s were t o

°e implemented. ( T ^ V

The Cabinet i s i n v i t e d t o cons/va^xthe recommendations o f TSRB

Report No 19 i n t h e l i g h t o f t h e i r ^ a r ^ p A r d i s c u s s i o n and t h e o p t i o n s s e t

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