To freeze or not to freeze?

The question of whether or not to freeze public sector pay has had a fair bit of airtime over the past few days.  In his interview at the weekend, Alistair Darling seemed to take a hard-line on the issue – and most outlets wrote it up as him not ruling out a freeze.  But, via today’s Times, “sources close to [Darling]” say that he won’t re-open wage deals to introduce a freeze.  While, for his part, David Cameron is also claiming that a Tory government wouldn’t order a freeze of public sector pay.  The politics of the situation is plain: neither side wants to seem especially tough on public sector pay ahead of the “nice cuts vs nasty cuts” battle which lies ahead.

But, as today’s FT points out, the scale of the wage bill – and the scale of the debt crisis – makes it very unlikely that the next government won’t take action over public sector pay.