Page last updated at 15:20 GMT, Monday, 7 December 2009

Lib Dem Cable seeks two-year public sector pay cap

Vince Cable
Vincent Cable believes the cap could save 4bn

The Liberal Democrats say they would cap public sector pay rises at £400 a year for two years if they were elected to power at the next general election.

Treasury spokesman Vincent Cable said it would save £4bn over two years, and be part of a package of measures to get the UK's public finances back on track.

Labour plans a pay freeze for 40,000 senior public servants in 2010/11.

The Tories plan a one-year pay freeze for public sector workers earning over £18,000, except military personnel.

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