UK PUBLIC SECTOR PAY DEAL MUST AVOID ENTRENCHING INFLATION – Faced with high inflation after years of stagnant wages
The Chancellor of the Exchequer Jeremy Hunt said that the next round of public sector pay rises must avoid embedding inflation deeper in the economy, but would be as generous as possible.
Public employees’ pay settlements are due to be announced in the coming weeks on a sector-by-sector basis following a series of reviews by independent panels. Those panels make a recommendation to the government which then takes a final decision.
Asked by reporters ahead of a major policy speech whether he would accept the recommendations, Hunt said such decisions would be difficult and had to be based on a wide range of factors.
Faced with high inflation after years of stagnant wages, Britain has experienced more than six months of intermittent strikes across the public sector since last year’s pay review process, with many of those disputes still unresolved.