City flirt Brown is risking votes

In a speech to City bigwigs, he promised a "tough approach" to pay right across the public sector for years ahead.

His proposals would slash the living standards of millions of civil servants, health workers, teachers and local government workers.

Mr Brown also made the astonishing claim that he had forged "a contract between the government and the British people" to impose swingeing cuts in public spending.

He boasted that this people's "contract" provided for a halving of Britain's deficit over four years.

He failed to mention that the legislation imposing these draconian cuts over four years was rushed through Parliament in just a few days with hardly any debate.

Foreshadowing ruthless pay curbs, Mr Brown told his well-heeled audience: "Last week I said that the parliamentary and ministerial salaries of all paid government ministers would be frozen.

"We must take an equally disciplined approach to pay and benefits right across the public sector.

"So today I can announce that after the reports of the review bodies we will also freeze the pay of senior staff in the Civil Service, senior staff in the military, the judiciary, senior managers in the health service and the pay of consultants, GPs and dentists."

The Senior Salaries Review Body recommended a general pay freeze on Wednesday, but it did propose a 2.25 per cent rise for NHS managers earning less than £80,000, plus a rise in the minimum pay rate for senior civil servants to £61,500.

However, Mr Brown insisted that the pay freeze must apply across the board, and he rejected the exceptions proposed by the review body.

Left Labour MP John McDonnell reacted furiously to Mr Brown's rant.

"Under his leadership people will continue to pay for the economic crisis for years to come with job losses, pay freezes and cuts in public services," protested Mr McDonnell.

"He has referred to a legally binding contract between the government and the people to reduce the budget deficit by half over four years.

"In effect the real contract he has entered into is a contract between the government and the banks that under new Labour the filthy rich are safe to start playing the casino economy again."

Civil Service union Prospect general secretary Paul Noon attacked the government for failing to honour the third year of a three-year pay deal agreed for senior civil servants.

Senior civil servants' union FDA general secretary Jonathan Baume complained: "It is simply untenable for the government to continue freezing the pay of senior civil servants as a political device year after year."

In his speech, Mr Brown also said the government would today be unveiling proposals for investing in high-speed rail.

He declared: "I believe in Britain's future. Broadband Britain can be a world leader, so too can creative Britain, biotech Britain, Nobel prize-winning science Britain, Olympic Britain, and high-speed rail Britain."