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LONDON DAILY ARCHIVE

Government May Reject Public Sector Pay Rise Recommendations to Tackle Inflation

The Treasury minister, John Glen, has signaled that the government may reject recommendations by independent review bodies for public sector pay rises due to concerns that it would further fuel inflation.

26 June 2023 · 00:32 UTC

The government is committed to tackling inflation, which currently stands at 8.7% and has led to the Bank of England increasing interest rates to a 15-year high.

The Prime Minister, Rishi Sunak, has also stated that he is willing to make unpopular decisions on public sector pay in order to bring down inflation.

The move is controversial and could lead to further industrial disputes and strike action.

The UK Chancellor of the Exchequer, Rishi Sunak, has stated that he will approach public sector pay in a responsible and affordable manner, even if it is not popular in the short term.

He also defended the recent rise in interest rates by the Bank of England, stating that it is necessary to combat inflation, which he considers to be a threat to people's well-being.