Budget 2012: 'there should be local pay in public services', the Chancellor says

Some Government departments will start talks about local pay next month, with more following next year.

The plans will initially affect 160,000 civil servants working in Job Centres, the Driver and Vehicle Licensing Agency and border guards at ports and airports across the country.

Mr Osborne would like to roll out the plans to all six million public sector workers – including teachers and hospital staff – from next year.