THE GOVERNMENT’S attack on public-sector pay will deliver a £1.7 billion blow to England’s economy, hitting the north hardest, the TUC warned today.

Taking cash out of key workers’ pockets will result in an average £3.2 million economic hit per parliamentary constituency, with a hugely disproportionate effect on northern regions, the union body says.

The TUC’s analysis calculated likely knock-on effects for local economies in the next financial year if Chancellor Rishi Sunak carries out his threat to slash £1.3 billion from key-worker pay settlements.