§ The Prime Minister
The report on higher incomes from employment by the Royal Commission on the Distribution of Incomes and Wealth has been published today as Cmnd. 6383. The report provides a factual analysis of trends in the levels and distribution of employment incomes exceeding £10,000 a year before tax and examines the economic and social reasons given for such incomes in relation to others. The reference did not require the Commission to make recommendations as to policy, but it draws attention to the desirability of making more widely known and available for discussion the criteria by which top salaries are determined. In an addendum to the report three members of the Commission have given their views on rewards for management.
The report represents the most thorough and comprehensive analysis available of the statistical information on higher incomes from employment and the Government welcome it as a valuable contribution to better public understanding of 312W the facts about top salaries and the factors bearing on their determination. The Government are now considering the implications for policy towards higher incomes generally. They will undertake appropriate consultations before taking a decision on any new policy. There is, however, no question of modifying in the current period of pay policy the limitation on increases in incomes above £8,500.
As I undertook in December 1974, the Government are also reviewing in this context the recommendations made at that time by the Top Salaries Review Body for higher salaries for chairmen and board members of nationalised industries.