THE leaders of the Labour and Conservative parliamentary parties have buried their political differences to join forces for the first time to demand a 22 per cent pay rise for MPs next year.

The chairmen of the Tory and Labour backbench committes held an unprecedented joint meeting to push for a £13,000 annual salary increase, The Times has learnt.

The MPs, whose salary is £59,095, are also demanding, in addition to the inflation-busting pay increase, an improved petrol allowance. Last year it was cut from 57.7p for the first 20,000 miles to 40p, in line with Inland Revenue rates. The revelation that MPs are seeking such a big increase, within seven months of the general election, is likely to attract widespread criticism at a time when the Chancellor is seeking to limit the public sector to increases of about 2 per cent.

The MPs argue that their salaries have fallen by 12 per cent against their public sector counterparts and 15 per cent in the private sector since they lost the right to set their own pay in 1994.

“All we are seeking is parity,” one senior MP said.

The private meeting took place on Thursday afternoon. It was convened after talks between Ann Clwyd, chairwoman of the Parliamentary Labour Party, and Sir Michael Spicer, the chairman of the Tory backbench 1922 Committee. Most Tory and Labour MPs were unaware that the meeting had taken place.

In February the Senior Salaries Review Body recommended a 2.8 per cent rise, in line with inflation, for ministers and MPs, compared with 2 per cent the previous year. Doctors and medical staff received 3 per cent. MPs’ salaries rise in line with senior civil servants.

The last report by the Senior Salaries Review Body, in March 2001, concluded that MPs’ pay had fallen behind their public and private sector counterparts such as head teachers, police chief superintendents and directors of medium-sized companies, who earn an average of £72,000.

There is no major review planned until 2007, but there is a mini annual review next year that the MPs hope to influence. A joint letter is being written by Sir Michael Spicer and Ms Clwyd, who is also the Prime Minister’s personal envoy to Iraq, to Geoff Hoon, the Leader of the Commons, to try to secure Cabinet support. Cabinet ministers earn £134,000, the Prime Minister £184,000.

One senior Tory involved in the negotiations, who declined to be named, said: “The fact is, since we lost the right to set our own pay we have fallen way behind our public and private sector counterparts. So far it’s 15 per cent.

“If we wait for the next review, it will be 20 per cent. There is no prime minister who will be willing to sanction a 20 per cent pay hike for MPs as it would cause too much outcry, which is why we need to act now in the interests of fairness.”

Both Labour and the Tories are hoping to secure the backing of the Liberal Democrats, who did not attend the meeting. Vince Cable, the Lib Dem Treasury spokesman, said: “This will be embarrassing for MPs. I could have earned a great deal more outside Parliament, but that is not what you go into politics for.”

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