North and 'Sarf'

Today we have another suggestion allegedly going to appear in the Budget in a few days time.  The Right Honourable George Osbourne, the Chancellor of the is Exchequer, is going to introduce regional variations into public sector pay.  On the face of it, this appears very fair.  After all, why should a Staff Nurse in Hull have a better quality of life than a Staff Nurse in London? Why should a Teacher have a worse quality of life in London than Hull?  However, there are other things that vary throughout the different regions of the U.K.  I am sure that inhabitants of the Hebrides would like to fill up their cars for the same costs as in the South of England.  Another regional variation is the number of applicants per vacancy.  In Hull it is over 30 per job, and much lower in London and the South East.  This high ratio of applicants per job has the overall effect of lowering wages, and vice versa.  So when you look at the differences in Public Sector vs. Private Sector for the regions, you could argue that it is not the Public Sector pay being too high, but Private Sector pay being too low.
The Government are going to achieve these regional differentials in pay is by 'freezing' Public Sector pay until Private Sector pay catches up.  The long term effect will be to take money out of the regional economies.  Assuming that the numbers of Public and Private Sector employees in Hull and surrounding areas are equal.  Then there will be a 6.5% reduction in the amount of money circulating in the local economy, whereas the figure for Surrey will be 0.25%. The regional impact will be another thing that varies.
For the regions outside of the South East of England to come out of the current recession, choking off the flow of money will also choke off the chance of recovery.   George Osbourne is showing his true colours: anti-North, anti Public Sector, and pro-the Rich!