British chancellor Gordon Brown pledged today to keep a tight lid on the government's finances and public sector pay a week ahead of his pre-budget report on December 6th.
Addressing the annual Confederation of British Industry, Mr Brown said he would stick with his programme of making government decisions independent of short-term political pressures whether it be in competition, statistics or industry policy.
"We will entrench our stability, keep public sector pay under control, maintain discipline in public finances, and my watchword will be stability now, tomorrow and into the future."
Mr Brown wants to encourage regional and local pay flexibility and has also said wage rises in the public sector should be based on the inflation target of 2 per cent, potentially setting him on a collision course with unions.