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Brown calls on regulators to name staff earning over £150k

Prime Minister Gordon Brown has called on regulators such as the FSA to name all individuals earning more than £150,000 as part of a number of measures to clamp down on excessive pay.

Speaking today about Whitehall efficiency, Brown said that the Government would publish the number of staff in each salary band above £50,000 and would name all those earning more than £150,000 in the civil service and other bodies.

But he also called on regulators and other public sector bodies to do the same in the “spirit of openness, accountability and responsibility”.

He said: “Those organisations found to be squandering public funds on over generous salaries for officials, at the expense of services for people, will be named and shamed.

“To set a new culture of openness, for civil servants and other bodies under direct ministerial control, we will publish for the first time the numbers in each salary band above £50,000 and name all individuals earning more than £150,000.

“And in the spirit of openness, accountability and responsibility I would expect others – including publicly-funded media, regulators and other public sector bodies – to do the same.”

The Treasury will have to approve all salaries over £150,000 and any bonuses over £50,000 before recruiting for senior positions. Those salaries not directly under Government control will have to be justified publicly to the relevant Secretary of State.

In his speech, Brown also said the Government would merge or abolish 123 quangos and would subject the remainder to greater oversight in order to save £500m a year.

He set out a further £12bn of spending cuts to reduce the UK’s public debt and announced that the senior civil service pay bill will be cut by up to 20 per cent over the next three years to save £100m a year.

He said that some senior pay and perks packages in the wider public sector have “lost touch with the reality of people’s lives”.

He outlined “radical reforms” to senior pay including tougher scrutiny for senior appointments and a review of senior pay across the whole of the public sector to be completed by next year’s Budget.

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Comments

There are 23 comments at the moment, we would love to hear your opinion too.

  1. At the risk of asking the obvious, why, after 12 years in Government, is Gordon Brown only just waking up to the fact that we have 123 quangos that can either be merged or abolished!?

  2. You must be joking 7th December 2009 at 12:44 pm

    AT LAST!!!

    This should be amusing!

    Of course, we not only need information on those with salaries of over £150k, but also justification for how the “civil servants” at the FSA felt they warranted a “bonus” last year.

    Let ye who is without sin cast the first stone!

  3. What is the point of all this? If it posturing please stop it now, it smacks of…all sorts.

  4. Don’t ask questions like that David, “New Labour” would launch a publicly funded enquiry into why we have 123 quangos!

  5. would be more interested in a list of regulators who could justify their pay no matter what the level.

    I doubt if a 20 year cost benefit analysis would show a positive result.

  6. Never quite know whether to trust anything Mr B has to say, and indeed it may be posturing, but if it’s real, bring it on – we are all paying the inflated salaries of the very people that seek to micro-manage us while letting the macro-economy go to hell in a hand-cart. As for bonuses paid to the regulator, words fail me..

  7. Incompetent Regulators Awards Team 7th December 2009 at 1:00 pm

    To Evan Owen. Have you been knobbled by Sants? Because it shows!

  8. F-Pack Wooden Spoon Awards Team 7th December 2009 at 1:03 pm

    In 2006 we have over 190 staff at the FSA earning in excess of £100k. Name and shame the useless please asap.

  9. Well done Taxpayers Allince. It seems that they are making the Agenda.Brown would certainly be fired in a private sector business if
    he had allowed such a growth in owerhead without any plans as to how to pay for it. He is
    clearly a weak and ineffective CEO so will the declarations be turned into actions

  10. Will this include the market value of their final salary pension benefits which is in deficit and to which the FSA is empowerd to levy additional IFA fees to cover?

    Will this include the 20million bonus, borrowed from the banks they failed to regulate in order to awarded failure to regulate the same banks?

    Will this include the £380,000 awarded to Clive Briault as a payoff for failure under the terms of his contract, which also entitled him to a year’s pay if his tenure is terminated by the FSA. He has also accrued a pension pot worth more than £870,000.

    JOBS FOR THE BOYS EVEN WHEN THEY FAIL. ARE THEY THE SOLUTION OR THE PROBLEM?

  11. Richard Brown, Managing Director, Moneynotion Limi 7th December 2009 at 1:34 pm

    One nettle we have to grasp nationally is stopping the final salary pensions schemes for ALL public servants, including local government, teachers, firemen etc. etc.

    When the wealth creators who generate the money for our economy (industry, commerce, financial services etc.) can’t afford final salary schemes for themselves, it’s inappropriate that they (we) should have to pay through taxes for final salary schemes for those who don’t generate wealth for the economy.

  12. That’s it everyone – keep venting that spleen. Looking forward to the next article to get you all going again.

    Might I suggest the next article for MM to write: “IFAs invited to advise government how to regulate the financial services industry”

  13. Don’t be silly GM, that would be a waste of time: they didn’t listen in the first place.

  14. A Nuthernon E Mouse 7th December 2009 at 3:02 pm

    There is also a Smaller Businesses Practitioner Panel http://www.sbpp.org.uk/, which is supposed to cater for most IFAs, insurance & mortgage brokers.

    You may be interested in “Key Current Topics,” which include:

    1 “Banking regulation

    The first year of retail banking regulation by the FSA will be watched carefully by the Panel to see that it works effectively for the industry and consumers alike… ”

    2 “Retail distribution review

    This will have significant and far reaching implications for smaller firms in the retail investment market…”

    3 “Prudential regulation

    The prudential regulation requirements must not be allowed to lead to unnecessary burdens on smaller firms…”

    Yeah, right!

  15. and its only NOW Mr B is asking ! wow whats he been doing all this time,always a job for the boys me thinks!

  16. @Alan Summerfield. Trust me – I usually mean what I say. I occasionally exaggerate to make a point.

    I do believe that since 1987 some good has been achieved BUT the cost far outweighs these benefits.

    No matter what happens over the next 36 months I will be gone on Jan 01 2013.

    I have never been afraid to say what I think and now with only months what are they going to do ? throw me out a bit early.

  17. Will this include the £380,000 awarded to Clive Briault as a payoff for failure under the terms of his contract, which also entitled him to a year’s pay if his tenure is terminated by the FSA. He has also accrued a pension pot worth more than £870,000.

    JOBS FOR THE BOYS EVEN WHEN THEY FAIL. ARE THEY THE SOLUTION OR THE PROBLEM?

    200+ years ago, the French had a very effective solution for people like this.

  18. Mr Blackmore, any chance the Mr B alan Summerfield was referring to was Gordon Brown, the Prime Minister?

  19. @ Robert Rice – Thanks he probably was but Mr B is me and for the avoidance of doubt Gordon Brown is something else.

  20. Too little too late. This is no more than political posturing. It would be more relevant if Gordon Brown took away bonuses for senior FSA officials involved in the bank fiasco.

    Similarly if the Treasuary sacked senior FOS officials who failed to operate according to the law ( SI 2326 specific)

  21. How can they publish wages? What about Data Protection?

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