London Daily

Focus on the big picture.
Thursday, Dec 04, 2025

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
India backs down on plan to mandate government “Sanchar Saathi” app on all smartphones
King Charles Welcomes German President Steinmeier to UK in First State Visit by Berlin in 27 Years
UK Plans Major Cutback to Jury Trials as Crown Court Backlog Nears 80,000
UK Government to Significantly Limit Jury Trials in England and Wales
U.S. and U.K. Seal Drug-Pricing Deal: Britain Agrees to Pay More, U.S. Lifts Tariffs
UK Postpones Decision Yet Again on China’s Proposed Mega-Embassy in London
Head of UK Budget Watchdog Resigns After Premature Leak of Reeves’ Budget Report
Car-sharing giant Zipcar to exit UK market by end of 2025
Reports of Widespread Drone Deployment Raise Privacy and Security Questions in the UK
UK Signals Security Concerns Over China While Pursuing Stronger Trade Links
Google warns of AI “irrationality” just as Gemini 3 launch rattles markets
Top Consultancies Freeze Starting Salaries as AI Threatens ‘Pyramid’ Model
Macron Says Washington Pressuring EU to Delay Enforcement of Digital-Regulation Probes Against Meta, TikTok and X
UK’s DragonFire Laser Downs High-Speed Drones as £316m Deal Speeds Naval Deployment
UK Chancellor Rejects Claims She Misled Public on Fiscal Outlook Ahead of Budget
Starmer Defends Autumn Budget as Finance Chief Faces Accusations of Misleading Public Finances
EU Firms Struggle with 3,000-Hour Paperwork Load — While Automakers Fear De Facto 2030 Petrol Car Ban
White House launches ‘Hall of Shame’ site to publicly condemn media outlets for alleged bias
UK Budget’s New EV Mileage Tax Undercuts Case for Plug-In Hybrids
UK Government Launches National Inquiry into ‘Grooming Gangs’ After US Warning and Rising Public Outcry
Taylor Swift Extends U.K. Chart Reign as ‘The Fate of Ophelia’ Hits Six Weeks at No. 1
250 Still Missing in the Massive Fire, 94 Killed. One Day After the Disaster: Survivor Rescued on the 16th Floor
Trump: National Guard Soldier Who Was Shot in Washington Has Died; Second Soldier Fighting for His Life
UK Chancellor Reeves Defends Tax Rises as Essential to Reduce Child Poverty and Stabilise Public Finances
No Evidence Found for Claim That UK Schools Are Shifting to Teaching American English
European Powers Urge Israel to Halt West Bank Settler Violence Amid Surge in Attacks
"I Would Have Given Her a Kidney": She Lent Bezos’s Ex-Wife $1,000 — and Received Millions in Return
European States Approve First-ever Military-Grade Surveillance Network via ESA
UK to Slash Key Pension Tax Perk, Targeting High Earners Under New Budget
UK Government Announces £150 Annual Cut to Household Energy Bills Through Levy Reforms
UK Court Hears Challenge to Ban on Palestine Action as Critics Decry Heavy-Handed Measures
Investors Rush Into UK Gilts and Sterling After Budget Eases Fiscal Concerns
UK to Raise Online Betting Taxes by £1.1 Billion Under New Budget — Firms Warn of Fallout
Lamine Yamal? The ‘Heir to Messi’ Lost to Barcelona — and the Kingdom Is in a Frenzy
Warner Music Group Drops Suit Against Suno, Launches Licensed AI-Music Deal
HP to Cut up to 6,000 Jobs Globally as It Ramps Up AI Integration
MediaWorld Sold iPad Air for €15 — Then Asked Customers to Return Them or Pay More
UK Prime Minister Sir Keir Starmer Promises ‘Full-Time’ Education for All Children as School Attendance Slips
UK Extends Sugar Tax to Sweetened Milkshakes and Lattes in 2028 Health Push
UK Government Backs £49 Billion Plan for Heathrow Third Runway and Expansion
UK Gambling Firms Report £1bn Surge in Annual Profits as Pressure Mounts for Higher Betting Taxes
UK Shares Advance Ahead of Budget as Financials and Consumer Staples Lead Gains
Domino’s UK CEO Andrew Rennie Steps Down Amid Strategic Reset
UK Economy Stalls as Reeves Faces First Budget Test
UK Economy’s Weak Start Adds Pressure on Prime Minister Starmer
UK Government Acknowledges Billionaire Exodus Amid Tax Rise Concerns
UK Budget 2025: Markets Brace as Chancellor Faces Fiscal Tightrope
UK Unveils Strategic Plan to Secure Critical Mineral Supply Chains
UK Taskforce Calls for Radical Reset of Nuclear Regulation to Cut Costs and Accelerate Build
UK Government Launches Consultation on Major Overhaul of Settlement Rules
×