Asked whether a Labour government would consider blocking pay increases too, Ms Reeves said she understands why the pay review bodies are recommending 6% pay rises, but noted any wage settlements would have to be in line with her party’s fiscal rule – that debt must be falling as a share of national income after five years. “I understand why public sector workers, and why the pay review body is recommending these wages. Mr Sunak has expressed concern that unaffordable public sector pay hikes could trigger a “wage-price spiral”. Pay review body recommendations are not legally binding on the Government and, although they are typically accepted, ministers can generally choose to reject or partially ignore the advice. “For the Prime Minister to be pondering blocking the other pay review bodies now is utterly farcical.”

Source: The Times June 24, 2023 15:56 UTC