UK Treasury tells ministers not to expect bailouts from its reserve fund

James Murray (second left) with Rachel Reeves (third right) last year. He has written to ministers about decision to rein in use of reserve. Photograph: Adrian Dennis/AFP/Getty Images

Cabinet ministers have been told they will not be able to use the Treasury reserve to fund public sector pay rises and cannot access it unless there are exceptional circumstances.

In the run-up to the budget, James Murray, the chief secretary to the Treasury, has written to ministers setting out a decision to clamp down on departments’ access to the reserve.