Leader of the Conservative Party David Cameron said: "Managers in the NHS got a 7% pay rise last year... We will have a public sector pay freeze. This will not be popular, but it will be the right thing to do. People will have to retire a year later starting in 2016 - these are difficult decisions."
On this point the prime minister Gordon Brown agreed. "We have to reform public sector pensions and not have public sector pay rises as before," he said.
Debating the issues of tax and National Insurance Contributions (NICs), Cameron argued NICs should not be raised from 2011, if they earn more than £20,000, as under current Labour proposal. He said: "It is not possible to maketax giveaway promises, but we will not have NIC [hikes] that will hit the lowest paid the hardest."
And Liberal Democrat leader Nick Clegg pledged no one will pay income tax on the first £10,000 of their earnings under a Liberal Democrat Government.
He said: "Whilst difficult decisions are being made, at least the tax system will be on our side."
But the three leaders found more agreement on the issue of, what Cameron called "appalling" bonuses in the financial sector. Clegg said: "There should be no bonuses for board level staff at banks. Pay them lots of money and give them membership to a fancy golf club - but don't give them bonuses."
And Brown added: "We have to make sure remunerations are fair and the Bank of England should never allow banks to be irresponsible again."
