London Daily

Focus on the big picture.
Thursday, Sep 17, 2026

Tackling inflation takes priority over above-inflation public sector pay rises, says Chancellor Jeremy Hunt

Tackling inflation takes priority over above-inflation public sector pay rises, says Chancellor Jeremy Hunt

As 10 different public sectors go on strike this week, and more in the weeks after, the chancellor doubled down on refusing to give in to unions' demands of above-inflation pay rises.
The government's top responsibility is to tackle inflation, Chancellor Jeremy Hunt has told Sky News as thousands of public sector workers go on strike.

Mr Hunt said the strikes, which are taking place every day until the end of the year, are a "symptom of the fact that people are very worried that their pay packets are not going as far as they would have" last year, due to inflation.

He insisted the reason the government is not agreeing to above-inflation pay rises is because it is committed to getting inflation under control.

Inflation reached 11% in October and the government has previously argued big pay rises could push inflation even higher as companies might increase prices to cover higher wages.

Mr Hunt told Sky News: "My number one responsibility as chancellor, the number one job of the government, is to make sure that we tackle inflation, and that will deal - I think - with the underlying anger that many people feel."

He added that it is a "very challenging international picture" and about a third of the world's economies are predicted to be in recession this year or next.

"Truthfully, it is likely to get worse before it gets better, which makes it even more difficult when we have big public sector strikes going on at the moment," he said.

"But we have a plan in place and the Independent Office for Budget Responsibility says that plan will more than halve inflation over the next year."

Nurses are going on strike for the first time ever on Thursday and are among 10 industries taking action this week.

Unions representing nurses have said the government is refusing to even get around the table to talk about a pay rise.

Ministers over the weekend said it was the responsibility of the independent pay review bodies to determine what public sector pay is, not the government.

Asked why the government is not negotiating with nurses, Mr Hunt said: "We have to be very careful, we recognise the position that unions hold is completely sincere, because of the challenge of 11% inflation.

"On the other hand, we also have a sincerely held position, which is that we don't want to do anything that would lock in that high inflation rate for a long time to come."

He said the independent pay review body processes should be supported because of this.

Each public sector has its own pay review body made up of experts in that field who consult with unions and staff while taking into account parameters set by the government to come up with a final pay recommendation.

Mr Hunt added: "For this year, with the independent pay review body, we agreed with a pay rise for nurses which is comparable to the private sector."

Health Secretary Steve Barclay on Monday wrote to the Royal College of Nurses asking them to provide times for a meeting, but a government source told Sky News it will not be about pay and instead will look at other ways to support nurses.

"The Secretary of State remains happy to discuss all other ways to improve working conditions across the NHS as he has been stressing in the recent meetings with the unions," the source said.

An RCN spokesman said: "We have replied positively to his email and we will attend in the hope the government is now serious about negotiating."

Labour has questioned why the government will not negotiate directly with the unions on pay.

Shadow health secretary Wes Streeting told Sky News on Sunday: "It's completely unreasonable for the government not to want to negotiate.

"I think they are spoiling for a fight.

"The government's line is a complete joke on that, there hasn't been a single minute of negotiation."

Treasury minister Andrew Griffith told Sky News on Monday if the government starts overruling independent pay bodies then that "makes a mockery of the process".
Newsletter

Related Articles

0:00
0:00
Close
Asthma Charity Warns of Major Gaps in Childhood Diagnostic Testing Across England
TUC Chief Paul Nowak Appointed to Bank of England Court
Bristol Opens £35 Million Deep-Tech Innovation Hub at Temple Quarter
Oxfordshire Village Votes Symbolically to Leave UK Over Asylum Housing Plan
Andy Burnham Deepens UK Defense and AI Cooperation With NATO and Canada
UK Government Announces Neonatal Safety Reforms After Thirlwall Inquiry
Bank of England Weighs Rate Decision as UK Inflation Rises to 3.1%
UK Health Unions Warn of Staffing Pressures as Public and Private Pay Growth Diverges
Rockstar Games Faces Tribunal Claims From 23 Former Grand Theft Auto VI Developers
UK Treasury Faces Tighter Budget Constraints as Borrowing Costs and Pension Spending Rise
Prime Minister Andy Burnham Sets Out Ten-Year Plan for Greater Public Oversight of Utilities
UK Economy Grows 0.4% in July as Services and Technology Activity Strengthen
Scotland, Wales and Northern Ireland Leaders Coordinate Push for UK Constitutional Change
Police Tighten Public-Order Measures After Anti-Immigration Protests in Dover and Portsmouth
UK Ministers Pressed for Answers After US Diplomat Accused of Child Abuse Images Leaves Britain
Jaguar Land Rover Pursues NATO Defense Contracts for Defender Vehicles
British Service Member Dies in Road Accident While Deployed in Ukraine
George Osborne Calls for Britain to Rejoin EU Customs Union
Anthropic Chief Dario Amodei Urges Faster UK Action on Advanced AI Risks
UK State Pension Set for 3.9% Rise Under Triple Lock
UK Labour Market Cools as Payrolled Employment Continues to Decline
Reform UK’s £72 Million in Donations Faces Scrutiny Under Proposed Retrospective Funding Rules
UK Doctors Warn Expanded Pharmacy First Scheme Could Put Patients at Risk
British Airlines Cut Short-Haul Capacity as Jet Fuel Costs Rise
UK News Publishers Forecast 40% Search Traffic Drop as AI Overviews Expand
Axel Springer Wins Approval for £575 Million Daily Telegraph Acquisition
London Mayor Sadiq Khan Opposes Heathrow Third Runway Over Climate Targets
Scotland, Wales and Northern Ireland Leaders Hold Summit Seeking Greater Autonomy
UK Energy Price Cap Set to Rise to £1,723 in October
UK Treasury Warns Middle East Conflict Is Threatening Economic Growth
Labour Moves to Retrospectively Cap Overseas Political Donations After Reform UK Funding Surge
HMRC Warns Nearly Seven Million Adults Are Unclear About State Pension Entitlements
UK Parliament Passes Sovereign Grant Reform Before Conference Recess
British Rail Passengers Gain Automatic Right to Switch Operators During Disruptions
Burnham Hosts Downing Street Business Summit as UK Fiscal Pressure Builds
Labour Government Moves to Challenge £72 Million in Reform UK Crypto Donations
UK Advertising Industry Warns Wider Junk Food Rules Could Put £1 Billion in Media Spending at Risk
Cornwall Opens Devolution Talks With UK Government Over Transport and Local Services
UK Parliament Considers Sovereign Grant Reform Setting Royal Funding at £99.9 Million
Trades Union Congress Calls for Income-Based Energy Tariff Funded by Higher Bank Levy
UK Prime Minister Rejects Second Scottish Independence Referendum
House of Lords Begins Scrutiny of Bill to Lower UK Voting Age to 16
Anthropic Says Claude Was Exploited in Weapons-Related and State-Linked Cyber Activity
Institute of Directors Urges UK Government to Avoid Business Tax Increases in Autumn Budget
Rising Gilt Yields Cut UK Fiscal Headroom to About £13 Billion Ahead of Budget
UK Economy Grows 0.4% in July as Services and Technology Activity Strengthen
UK Government Promises Clearer Student Loan Guidance After Repayment Backlash
Charities Warn Unpaid Carers May Die Before Receiving Government Compensation
Dover Unrest Prompts Review of UK Counter-Extremism Strategy
Celtic Summit Leaders Reassert Right to Pursue Independence From UK
×