Chancellor Rejects Union Claims on Pay Deals

Chancellor Rachel Reeves has firmly stated there will be 'no blank cheques' for public sector unions amid criticism from Conservatives regarding the government's recent pay deals aimed at resolving long-standing strike issues. Labour has proposed above-inflation pay increases for public sector workers, including a 5.5% raise on average and significant hikes for junior doctors and train drivers to address recruitment and retention challenges. Despite Conservative accusations that Labour is being controlled by unions, Reeves emphasized that the government has not capitulated to union demands. She acknowledged that the costs of these pay increases would exceed the previous Conservative administration's budget, necessitating cuts in non-essential spending to fund them. Reeves also rejected claims that her actions mimic austerity measures, asserting they mark the first real-terms pay increase for public sector workers in a decade. The upcoming budget will include a new approach to measuring government debt, allowing for investment through borrowing.