Brown to announce pay freeze amid fears over UKs credit rating

By Andrew Porter, Political Editor 730AM GMT 10 Mar 2010

The Prime Minister will have use of a debate on the economy to try to show that he is peaceful to get formidable with those on the open payroll.

But his proclamation comes as a new investigate shows that open zone compensate has risen by fifteen per cent some-more than compensate in the in isolation zone given Labour came to power.

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There are additionally renewed fears that Britains tip credit rating is at risk since of the Treasurys rejection to have cuts to revoke the necessity some-more quickly.

Mr Brown is approaching to endorse that comparison polite servants, judges, comparison NHS managers, GPs and quango arch management team will not have a compensate climb this year. Hospital doctors, dentists and jail officers will get no some-more than a 1 per cent rise.

However, he will stop short of rebellious what the Prime Minister sees as "frontline" open services. Police officers, teachers and nurses and are approaching to be unblushing carrying already negotiated apart three-year deals.

In a new investigate the Policy Exchange think tank points to the immeasurable differences in how the open and in isolation zone operate.

Neil OBrien, executive of Policy Exchange, pronounced "Public zone capability fell scarcely 4 per cent in the decade after 1997, whilst in the in isolation zone over the same duration it grew scarcely twenty-three per cent. Despite this, compensate has risen by fifteen per cent some-more than in the in isolation sector."

Tackling the magisterial open zone is seen as critical if the jot down �178 billion is to be addressed.

Yesterday fears were lifted last night over Britains destiny general monetary standing when an successful City consultant warned that programmed spending cuts were as well slow.

The Government plan to separate the necessity was "too pedestrian," according to one of the key credit agencies.

Brian Coulton, of the ratings group Fitch, pronounced Britain had to cut the necessity some-more quickly.

He pronounced "The aim of halving the necessity over 4 years is honestly as well slow, the a walking gait of mercantile consolidation. If we dont get an alleviation in the medium-term opinion in the UK, there will be means for concern."

Mr Coulton pronounced Britains mercantile opinion had "clearly run-down flattering sharply" over the last year and had seen the majority fast climb in the comparative measure of open debt to sum made at home product of any top-rated country.

George Osborne, the shade chancellor, pronounced "Here is the clearest probable notice from a credit rating group that the Governments plan is not sufficient to strengthen Britains credit rating. The red light is flashing over the British economy."

The Prime Ministers orator pronounced "Our credit rating stays as it continually has been and the supervision has a joining to separate the necessity in 4 years and has transparent plans to do that."

But Sir Stuart Rose, the authority of Marks & Spencer, additionally appeared to foster progressing movement on the deficit.

He pronounced "Our customer, Tescos customer, Sainsburys patron etc. are not stupid. They know that the UK economy is in a formidable situation, they know effectively we are over borrowed and they know there is disinfectant to be taken. I am an disciple of carrying that disinfectant progressing and some-more continually since we know if we dont take the disinfectant right away the disinfectant will be some-more unpleasant for us to take later."

It came as a range of alternative data, together with the sharpest tumble in exports for some-more than 3 years, led to increasing stress that the economy could be plunged in to a stand in drop recession.

* Mr Brown is additionally approaching to make known that the Budget will be on Weds twenty-four March.