Rachel Reeves warns there is 'a cost' to not giving public workers pay increase. The new Labour chancellor signalled she was considering giving more than a million teachers and nurses above-inflation pay rises of 5.5%.
Rachel Reeves signalled today she is prepared to give thousands of teachers, NHS staff and police officers above-inflation pay rises.
The Chancellor has accused former ministers of 'running away' from decisions on public sector pay, telling the BBC's Sunday With Laura Kuenssberg programme: 'They called an election, they didn't make the tough decisions, they ran away from them and it's now up to us to fix it and to pick up the pieces.'
It came after reports suggested independent pay review bodies have recommended a 5.5 per cent rise for teachers and around 1.3 million NHS staff. This pay rise is in line with that given to the private sector. '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 told Sunday with Laura Kuenssberg, stressing her spending rules were 'non-negotiable'.She also said the Government would carry out a review of pensions to help stimulate growth by unlocking cash in schemes.
During the election, Sir Keir and Labour ran on a pledge that their plan would be 'fully costed' and the party would not raise taxes on workers aside from those stated in their manifesto
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