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But angry police leaders rejected the olive branch – and demanded the outstanding rise is paid first.
Ms Smith’s move came as Gordon Brown unveiled plans to axe annual pay talks for six million public sector workers.
The PM wants long-term deals with teachers, nurses, police and NHS staff to keep a lid on inflation.
In a letter to John Randall, chairman of the Police Negotiating Board, Ms Smith said: “Multi-year pay settlements are the right way forward for the public sector.”
She added: “I believe these future settlements could be implemented in full.”
Police Federation chairman Jan Berry said: “We do not accept the Government’s economic argument that suppression of police pay is needed in order to control inflation.”
Mr Brown said the difficult decision to stage public sector pay broke the back of inflation last year.
And he added that fixing salaries well in advance would make it easier to control Government spending.
But Shadow chancellor George Osborne said: “Thanks to Gordon Brown’s economic incompetence, Britain borrowed in a boom and has the largest budget deficit in Europe. The Government has run out of money – simple as that.”
Union chiefs claimed multi-year deals were a ploy to impose below-inflation rises or wage freezes.
They accused Mr Brown of wanting to bury any pay disputes until well after the next election.
Beside the police pay row, civil servants, nurses and town hall staff are threatening strikes over pay.
Brian Strutton, national officer of the GMB – which has 300,000 public sector members – said: “The Government reneged on recent pay review body awards. Who’s to say it would honour a three-year deal?”
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