Reeves drops hint towards public sector pay increase above inflation

Rachel Reeves hinted that public sector workers might see an above-inflation pay rise in the coming months on a BBC interview this morning.

The Chancellor said “people won’t have long to wait” on a pay decision for public sector workers in her first interview from Number 11 Downing Street.

She told Sunday with Laura Kuenssberg: “I really value public service workers, in our schools, in our hospitals, in our police as well.

“There is a cost to not settling, a cost of further industrial action, and a cost in terms of the challenge we face recruiting.”

READ MORE: Paul Nowak interview: ‘I’ll tell it straight to Labour – and push for wealth taxes’

It follows a BBC report that independent pay review bodies had recommended 5.5% rises for teachers and some NHS staff, which the Institute for Fiscal Studies (IFS) has warned could come to a cost of £3bn.

IFS director Paul Johnson has said such money would need to be sourced from borrowing, tax rises or spending cuts, according to BBC reports.

The Chancellor added: “We will do it in a proper way and make sure the sums add up.”

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