Reasonableness in pay for both the public and private sector

The view of the House of Commons Public Administration select committee that there should be a High Pay Commission is commented on by Polly Toynbee . Aptly, she points out that it is inconsistent to expect it only to look at public sector pay without reference to the private sector. The high levels of remuneration some bosses of public sector organisations get are normally justified on grounds of comparability with top jobs in the private sector. Unless private sector remuneration becomes more reasonable, it will be hard to toe the line that those in the public sector should get much less.

Of course, the government does not have direct control over the remuneration of private sector firms. They can pay their bosses what they like. And, arguably, it would be too blunt a tool to fix regulations regulating the level of remuneration directors and other senior staff can take home. The Right would also denounce it as a violation of people's economic freedom to operate firms how they like.

However, it does strike me that it is hard to justify anyone getting paid much more than the £200k a year the Prime Minister gets. As such, I would say that much higher income taxes should be introduced on incomes above that figure. If private firms [and remuneration committees in NDPBs and other public sector organisations] want to pay their top people more than that, then they can - but the tax system should tax those earners more, as they are most able to afford it. In addition to the proposed 50% rate, perhaps there should be a 60% or 75% rate on earnings above £250,000.