Please try again later {{ /verifyErrors }}The government could need up to £10bn extra to cover public sector pay increases if reports of a 5.5 per cent rise prove true, a leading economist has warned. Schools and hospitals are unlikely to be able to meet a 5.5 per cent pay rise from their existing budgets without making cuts elsewhere. Asked where the additional money for public sector pay rises could come from, Mr Johnson said: “It can only come from higher borrowing than they’re planning, higher taxes than they’re planning or cuts in spending elsewhere. There is no fourth option here.”But failing to meet the recommendations of the pay review bodies, expected to be published this month, would set up a clash with trade unions representing the 6 million public sector workers. “The pay review process is ongoing, and no final decisions have been made.

Source: The Times July 20, 2024 20:09 UTC