British Minister Proposed Tying MPs' Salaries To GDP Growth

• 25.01.2026, 20:01

To incentivize the government to prioritize the economy.

UK Business Secretary Peter Kyle has proposed tying MPs' salaries to GDP growth to encourage the government to prioritize the economy. This is reported by Financial Times.

Kyle said he would like the Independent Parliamentary Standards Authority (IPSA), which oversees MPs' salaries, to change the formula for calculating salaries and link them to the country's growth rate. The minister said Labor MPs were not as enthusiastic about the proposal.

"They are not as enthusiastic as I am, but ... if we achieve, for example, 5 percent growth in the economy, we will realize our potential," he said, noting that government departments do not always prioritize economic growth.

A former Labor councillor James Midway questioned the idea, noting that MPs' actions rarely directly affect GDP. At the same time, Chris Curtis, co-chair of the Labour Party's MPs' Economic Growth Caucus, backed the initiative, calling it a step toward restoring confidence in politics.

The current salary of British MPs is £93,904 a year and is indexed by various measures, including changes in average public sector pay, the FT noted.

The UK economy grew 0.3% last November, beating forecasts, The Guardian wrote earlier. The services sector grew by 0.3%, industry by 1.1%, while construction contracted by 1.3%.

Experts speaking to the newspaper said that activity in the economy has accelerated, there are signs of a rebound in consumer spending, and growth for 2025 could reach 1.4%. They cautioned, however, that growth could be volatile due to high tax burdens and risks of lower consumer spending in 2026