UNIONS have reacted with fury to a leaked Treasury document which suggests a two-year pay freeze for public-sector workers to help offset the cost of the coronavirus pandemic.

The document, dated May 5, says the outbreak could leave Britain with a deficit of at least £337 billion – and possibly £516 billion – this year, compared to the £55 billion forecast in Chancellor Rishi Sunak’s March budget.

It said measures could also include ending guaranteed increases in state pensions.