Rachel Reeves faces battle with unions over ‘insulting’ 2.8% pay rise proposal for teachers and nurses

The Chancellor Rachel Reeves - (PA Wire)

Chancellor Rachel Reeves is headed on a collision course with public sector unions who have hit out at proposals to raise pay for more than a million public sector workers by 2.8 per cent next year.

Inflation is predicted to average 2.5 per cent this year and 2.6 per cent next year, according to forecasts from the Office for Budget Responsibility.