The UK government accepted recommendations for public sector pay raises, as Prime Minister Rishi Sunak tries to draw a line under a year-long battle with labor unions.
Treasury Minister John Glen told Parliament on Thursday that the government had signed off on recommendations from pay review bodies “in full.” Those bodies have advised increasing pay for staff including police officers, teachers and doctors by 5%-7%, Glen said, although some grades could be eligible for more.
Bloomberg News earlier reported the decision by cabinet ministers to accept the recommendations.
The decision to accept the proposals heads off one potential argument with labor unions, after ministers had repeatedly warned that the government wouldn’t necessarily do so as it prioritizes the fight against inflation. But the government also risks a fresh row after Chancellor of the Exchequer Jeremy Hunt ruled out extra borrowing to fund the increases — a move that threatens further cutbacks to services already stretched to the point of crisis.
“If you fund any public sector pay rise by increasing borrowing that year, that pumps billions of pounds of extra money into the economy,” Hunt told ITV’s Peston program on Wednesday.
With a general election expected next year, polls show voters blame the ruling Conservatives for the erosion of public services on their watch, leaving the ruling party facing a double-digit deficit to the opposition Labour Party in most surveys. Sunak and Hunt are calculating that if they can get inflation down — it’s currently running at 8.7% — they can still try to campaign on their economic record.
--With assistance from Joe Mayes.
