No extra money for pay rises says Downing Street, amid threat of renewed strikes

Pay rises last year ended long-running strikes by public sector workers, but a dispute over funding this year’s pay increases could see them return (Owen Humphreys/PA) - (PA Archive)

Public sector budgets face a further squeeze if pay rises for nurses and teachers exceed the Government’s plans as Downing Street ruled out additional funding for higher wages.

Pay review bodies are reportedly recommending increases of as much as 4% for teachers and 3% for NHS workers, but the Government has only budgeted for a 2.8% rise for public sector workers.