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Alex Potts's avatar

I feel like this is not a question that can really be thought about in terms of the normal economic laws of supply and demand, because the role of Prime Minister is kinda sui generis. There's only one of them at a time, and whether the salary is £160k or £300k, that salary is going to be very far down the motivations of anyone actually wanting to become Prime Minister.

Certainly, £160k is enough that you should never have financial worries, even disregarding that many PMs were either born into wealth or had lucrative pre-politics careers. I agree that the salary shouldn't be so low that it excludes those who don't have preexisting wealth, but £160k is quite clearly not such a salary.

It is indeed absurd that Keir Starmer is paid less than the Match Of The Day pundits, but - hear me out here - maybe Micah Richards is really overpaid, instead of Keir Starmer being underpaid.

I'm not particularly averse to the idea of politicians being paid more - as you note it's a tiny fraction of the national budget - but I doubt that any salary would make the role of PM a highly desirable one to successful but normal and not-politically-obsessed people. There are other things that make Westminster politics unappealing to those with achievements elsewhere.

If you wanted to make a case for politicians being paid more, local councillors would be a good place to start. Ideally the councillor's salary should be about £30k, enough to live on; as it is, we expect councillors to juggle caring for their local communities with another full-time job, which shows just how (un)seriously local democracy is taken in this country.

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Steve H's avatar

Broadly agree. A couple of points, though:

1. The PM gets a range of benefits that have the effect of substantially increasing overall comp, especially free rent of a large flat in central London and a big country estate, a driver and a car. Those have to be worth several hundred k. And it’s not uncommon for top leaders to have a comp structure in which base pay is only one component (although it’s normally RSUs and LTIPs rather than Chequers…)

2. All of this is driven by idiot press, in my view. It’s totally pernicious. I’ve long thought MPs should be paid substantially more and should also have a flat in a state-owned corporate block in central London, as well as a state-provided and staffed office, and if they want something different, they should fund it themselves. But the Mail would never wear it. Similarly, health service managers are paid peanuts by comparison with private sector managers, even at CEO level. A CEO of a large trust earns a lot less than, say, a CEO of a FTSE 250. Again, the Mail would have conniptions at managers being paid more. They prefer badly paid, overstretched and demotivated managers and in my darker moments, I suspect this is not least because it means they have an endless source of stories when some of those managers stuff things up.

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