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The Guardian - UK
The Guardian - UK
National
Phillip Inman

Cancelling fuel duty freeze could pay for public sector pay rise, says IFS

Chancellor of the Exchequer Jeremy Hunt, pictured at a meeting of senior leaders from across UK green industries at Queen Elizabeth Olympic Park, London, 21 February 2023, has so far fended off calls for the government to offer public servants a bigger pay rise.
Chancellor Jeremy Hunt has so far fended off calls for the government to offer public servants a bigger pay rise. Photograph: Stefan Rousseau/PA

Jeremy Hunt could offer striking public sector workers a bigger pay rise before his budget next month by cancelling plans for a fuel duty freeze costing £6bn, according to a leading tax and spending watchdog.

With waves of fresh strike action planned across the public sector next month, the director of Institute for Fiscal Studies (IFS), Paul Johnson, said the chancellor faced a “straight choice” between subsidising car driving and helping public sector workers cope with the cost of living crisis.

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