Rishi Sunak has now conceded public sector workers the sum he was told to pay them by their independent review boards last year, an average rise of 6%. Had he done so then, we might have avoided six months of debilitating strikes in education, health and other public services. Last year he said he could not afford it. He still says that, demanding that the shortfall of £5bn over two years must come from departmental budgets.
The cost of the strikes will never be known. But a further cost will come from departments hacking away at their spending over the next two years, when we assume another buffeting will take place. That is the price of holding back government borrowing, keeping down taxes and fighting inflation. Given how poorly Britain is faring compared with other G7 countries, I remain unconvinced that this sort of austerity is truly the way back to growth.
