The UK business secretary has suggested linking MPs’ pay directly to GDP growth, arguing it would sharpen Westminster’s focus on boosting the economy.
Peter Kyle told the Financial Times he would like the Independent Parliamentary Standards Authority to “peg MPs and ministerial pay to our growth rates as a country”, adding: “I’m serious. I would love them to.”
He acknowledged the idea was not universally popular among Labour MPs, but said: “If we get the economy growing at, for example, 5 per cent we would be fulfilling our potential.”
MPs’ salaries currently stand at £93,904 and rise in line with metrics including public sector earnings. Kyle also criticised what he described as an inconsistent focus on growth across government, saying: “I’ve not had the impression it is the number one target of our body politic.”
The proposal drew mixed reactions. Former Labour adviser James Meadway said: “This is a daft gimmick that might flatter some MPs’ self importance but the hard truth is little they do has much direct impact on GDP.”
However, Labour Growth Group co-chair Chris Curtis said: “It’s the right thing to restore trust in politics for the public to see MPs linking their pay to the improvements in the economy we are aiming to deliver.”