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Labour hints at above-inflation pay rises for public sector workers
Chancellor Rachel Reeves giving a speech at the Treasury in London, July 8, 2024

THE government will “make sure the sums add up” if public-sector workers are given above-inflation pay rises, Chancellor Rachel Reeves said today.

Reports suggest independent pay review bodies have recommended the 5.5 per cent increase for teachers and around 1.3 million NHS staff.

Speaking to the BBC, the Chancellor said she values public service workers, who “won’t have long to wait for a decision.”

“There is a cost to not settling, a cost of further industrial action, and a cost in terms of the challenge we face recruiting,” she said, stressing her spending rules were non-negotiable.

“We will do it in a proper way and make sure the sums add up.”

Government ministers have not confirmed if Labour will implement the recommendations.

Institute for Fiscal Studies director Paul Johnson suggested the pay rises could cost an extra £3 billion for schools and the NHS alone.

Ms Reeves also accused Conservative former ministers of “running away” from making a decision.

She singled out former education secretary Gillian Keegan, saying the recommendations for teachers had been on her desk for months.

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