LONDON, July 12 — British Finance Minister Jeremy Hunt has ordered ministers to find £2 billion (RM12 billion) to £3 billion in savings to fund 6 per cent pay rises in the public sector this year, the Financial Times reported yesterday.
British Prime Minister Rishi Sunak and Hunt are expected to agree on a strategy for pay rises in the public sector tomorrow, FT reported, citing government insiders.
Pay in Britain grew faster than expected, and wages excluding bonuses were 7.3 per cent higher in the three months to May than a year earlier, while economists polled by Reuters had forecast a 7.1 per cent rise.
Sunak and Hunt agreed to discuss the response to the pay review bodies after looking at the new data, according to the newspaper.
The British Treasury did not immediately respond to a request for comment.
Hunt has warned that he will not borrow more money to fund pay rises for public sector workers include teachers, nurses and police officers, according to FT.
Reducing inflation “means taking responsible decisions on public finances, including public sector pay, because more borrowing is itself inflationary”, Hunt said on Monday. — Reuters
