UK Finance Minister Hints At Above-Inflation Pay Rises For Public Sector Workers

• Britain's new finance minister Rachel Reeves said she will consider giving inflation-busting pay increases for almost 2Mn government employees later this month to avoid crippling public sector strikes.
• Two pay review bodies who advise the government gave the recommendation of a 5.5% wage rise for 460,000 teachers and 1.4Mn staff in the state-run National Health Service, according to media reports.
• The estimated cost of pay rises of 5.5% for teachers and certain National Health Service staff could be about 3Bn pounds ($3.88Bn), according to the Institute for Fiscal Studies (IFS).
• If the government wants to approve the pay raises it would need to raise taxes, increase borrowing or cut government spending in other areas, the IFS said.
• Reeves said she would set out her plans for public sector pay deals and announce the date of the next budget before the end of this month.

(Source: Reuters)