London Daily

Focus on the big picture.
Wednesday, Oct 14, 2026

Tory leadership: Truss backtracks on public worker pay plan after backlash

Tory leadership: Truss backtracks on public worker pay plan after backlash

Liz Truss has scrapped a plan to link public sector pay to local living costs following a backlash from Tory MPs and opposition parties.

The Tory leadership candidate had proposed regional pay boards, in a bid to save taxpayers a potential £8.8bn.

But the policy was criticised by several senior Tories, who argued it would mean lower pay for millions of workers outside London.

Ms Truss has now said the proposal would not be taken forward.

The foreign secretary told the BBC the plan had been "misrepresented" and people had been "unnecessarily worried about my policies".

"I never had any intention of changing the terms and conditions of teachers and nurses," Ms Truss said. "But what I want to be clear about it that I will not be going ahead with the regional pay boards."

Earlier a spokesperson for Ms Truss's campaign said current levels of public sector pay would be maintained if she became prime minister.

Former Chancellor Rishi Sunak and Foreign Secretary Ms Truss are vying for support from Conservative members to replace Boris Johnson as Tory leader and prime minister.

A spokesperson from Mr Sunak's campaign described the U-turn as dramatic.

"It demonstrates a lack of serious judgment by setting out plans that would see pay dramatically cut for police, nurses and our armed forces in Cardiff and Canterbury, Teesside and Taunton during a cost of living crisis," they said.

"It also shows a worrying lack of grip of detail in what is already a woolly economic plan.

"If this was in a general election, it would have been a potentially fatal own goal for the Conservatives."

Announcing the policy on Monday night, Ms Truss had said she wanted "a leaner, more efficient, more focused Whitehall" and set out plans which suggested savings of £11bn a year.

This included £8.8bn which would come from introducing regional pay boards, meaning that civil servant pay - and potentially later other public sector workers' salaries - could be adjusted to reflect the area where civil servants work.

It could have seen workers in, for example, the south-west or north of England paid less than those in the south-east.

In addition to saving money, the Truss camp also argued it would help boost growth in areas, where the private sector had been crowded out by public sector salaries.

However, the proposal was dropped after just over 12 hours when it was met with strong resistance from Tories.

Tees Valley mayor Ben Houchen - who is supporting Mr Sunak - described the policy as "horrifically bad", telling the BBC's World at One it could lead to more scrutiny of policy from the foreign secretary.

"There are lots of tasty soundbites from Liz - what we're now seeing is that as people start to scrutinise that detail it can unravel quite quickly," he said.


Liz Truss is widely thought to have been ahead in the Tory leadership race.

She had momentum in the campaign - and had avoided any significant errors.

Until now.

This policy has attracted huge criticism from opposition parties - and many Conservative politicians supporting Rishi Sunak.

They argued regional pay boards would have been "levelling down".

Speaking to Mr Sunak's allies this afternoon, they argue Ms Truss's plans are unravelling and that it was a "catastrophic error of judgement".

Team Sunak will hope this starts to change the dynamic of the campaign - and potentially put him back on the front foot just as Tory members start voting.

Team Truss will hope that junking the policy quickly will limit the damage.

Ms Truss met supporters in the south-west on Tuesday as she continued her campaign for the No 10 job


A number of Conservative MPs in the south-west of England also attacked the policy, including Sunak ally Steve Double who said it would be "hugely damaging to public services in Cornwall, where we already struggle to recruit NHS staff".

Labour's shadow chancellor Rachel Reeves said the proposal "reveals her [Liz Truss's] priority would be to slash the pay packets of working people".

Liberal Democrat leader Sir Ed Davey said: "U-turning on a multi-billion-pound policy five weeks before even taking office must be a new record."

Ms Truss has been seen as the frontrunner in the race for No 10, with several polls showing her to be more popular among the Conservative party membership.

Both candidates have announced a string of competing policy proposals to woo Conservative members.

The latest came from Ms Truss who, in an interview with the Daily Mail newspaper, pledged to order a review into whether not paying for a TV licence should still be a criminal offence.

Those who watch TV or BBC iPlayer risk being fined or taken to court if they do not pay the £159-a-year licence fee.

In 2020, there were 55,061 prosecutions and 52,477 convictions for TV licence evasion.

Ms Truss told the Mail a "disproportionate number" of women had ended up in jail for non-payment, adding she wanted to "look at how we can make sure that we reform the TV licence fee, so we don't end up with those punitive results".



Liz Truss: "I never had any intention of changing the terms and conditions of teachers and nurses."


Newsletter

Related Articles

0:00
0:00
Close
MI5 Warns of Rising Russian and Iranian Sabotage Threats to British Military Facilities
UK Prime Minister Andy Burnham Pledges Closer EU Ties as MI5 Reveals Russian Brexit Interference
UK Orders Security Review Following Reported Killing of Former Politician Ann Widdecombe
UK Prime Minister Andy Burnham Meets German Chancellor Merz to Strengthen European Security Ties
Nearly 100,000 NHS Patients Treated in Hospital Corridors as England Braces for Winter Pressures
UK Government Rejects US-Russia Diesel Agreement and Reaffirms Sanctions Against Moscow
UK and Germany Agree to Deepen Security and Economic Cooperation Following Berlin Talks
British Prime Minister Burnham Pledges Closer EU Ties During Visit to Germany
UK Announces New Sanctions on 17 Russia-Linked Entities During Foreign Secretary's Ukraine Visit
UK and Germany Finalize Kensington Treaty to Strengthen Defense and Technology Cooperation
Britain Maintains Diplomatic Mission in East Jerusalem Despite Israeli Closure Deadline
English Councils Push Government to Rethink Proposed Funding Cuts
Scottish Homebuilding Falls to Lowest Level in 11 Years
BBC Chief Matt Brittin Defends Restructuring as Staff Challenge Job Cuts
UK Finance Warns High Energy Costs and Bond Yields Are Complicating Fiscal Outlook
UK Adopts All 44 Recommendations on Regulating AI in Healthcare
Chancellor John Healey Prepares Autumn Budget as Borrowing Costs Strain Public Finances
UK Investigators See Strong Indications of Iranian Link After RAF Fairford Security Operation
Laura Trott Pledges Tighter Controls on Political Activism in UK Classrooms
Welsh Ministers Launch Long-Term Review of North Wales and Anglesey Crossings
Welsh Government Orders 18-Month Study of Road Solutions Around Newport
Reform UK MP Sarah Pochin Faces Scrutiny Over £800,000 Second Home Purchase
British Households Grow More Concerned About Fuel and Energy Prices
NHS Leaders Warn of Rising Winter Pressure on Emergency Departments
Kemi Badenoch Proposes £2.3 Billion Employer National Insurance Cut for Young Workers
Middle East Conflict Could Erase UK Fiscal Headroom, Economists Warn
Manchester City Found Guilty of Multiple Premier League Financial Rule Breaches
UK Security Services Find Strong Indications of Iranian Role in RAF Fairford Incident
Costa Coffee Returns to Operating Profit on Iced Drinks and Menu Changes
Asos Warns Customers After Unauthorized Access to Retail App and Data
Kemi Badenoch Puts Growth and Deregulation at Center of Conservative Conference
Campaigners Warn of Deepening Social Care Crisis for Disabled Adults
Study Finds Rising Early-Onset Cancer Rates Among Adults Under 50 in Britain
UK Coach Operators Warn High Diesel Prices Could Force Route Cuts
FCA Opens Independent Review Into Handling of Epstein-Linked Whistleblower Case
Argentina Vows to Block Falkland Islands Offshore Oil Development
UK Chancellor Prepares Fiscal Measures and Welfare Reforms Ahead of Autumn Budget
Sainsbury’s and Morrisons Explore Potential Multi-Billion-Pound Merger
UK Weighs Tariffs on Chinese Electric Vehicles to Align With European Union
UK Threatens Diplomatic Expulsions Over Planned Closure of East Jerusalem Consulate
UK Energy Price Cap Hits Three-Year High as Middle East Conflict Raises Costs
Seventh Arrest Made in Suspected Terror Plot at RAF Fairford
Systemic Education Collapse Sparks Mass Student Uprisings in France
Green Party Faces Backlash Over Resolution Equating Zionism With Racism
Conservatives Debate Scrapping Environmental Rules for New Homes
Cornwall Insight Warns UK Energy Bills Could Approach £2,000 This Winter
UK Coach Operators Warn of Service Cuts as Diesel Prices Exceed £2
Scottish Parliament Approves £68 Billion Budget With New Tax and Property Measures
FCA Opens Independent Review Into Handling of Epstein Whistleblower
UK Government Drops Plan to Suspend Jury Trials in England and Wales
×