Rishi Sunak has called on high-earning executives to “embrace pay restraint” during the current period of soaring inflation and looming recession.
The prime minister warned that generous pay awards at the top of the salary spectrum will increase inflationary pressures by fuelling a wage-price spiral.
Mr Sunak was speaking as the government faces the threat of strikes bringing Britain to a standstill this winter, with workers including nurses voting for industrial action in support of demands for rises to keep pace with 10 per cent inflation.
In a round of TV interviews at the G20 summit in Bali, Mr Sunak said it was a “tragedy” that workers were having to turn to foodbanks, which have even been set up in some NHS hospitals.
But he said that the salary hikes of up to 17 per cent being sought by the Royal College of Nursing were “unaffordable”.
With the government holding public sector pay below inflation, Mr Sunak was asked whether executive pay should also be reined in.
He told ITV: “Of course I would say to all executives to embrace pay restraint at a time like this and make sure they are also looking after all their workers. I’d say that all the time.
“Of course in a situation like this I’m sure executives of most companies will be thinking about pay settlements for senior management, for their workers and making sure they are fair.
“That’s what everyone would expect and I’m sure that’s what most companies are doing.”
He added: “I don’t want to see a wage-price spiral.
“But it’s not about me. It’s about what’s right for the country, because if we do end up in a wage-price spiral, the people who are going to suffer the most are the people on the lowest incomes and we’ll still be having this conversation in a year’s time.”
Mr Sunak refused to say whether he paid for private healthcare, telling ITV: “I wouldn’t normally talk about the healthcare me or my family receive, for obvious reasons.
“What’s important is that we have an NHS and healthcare system that is there for people when they need it.
“I think most people would appreciate talking about one’s family’s healthcare is probably not appropriate.”
