Economic Hit From Strikes Worth It To Control Inflation, Says Hunt

The government is willing to accept short-term damage to the economy from public sector strikes rather than give in to pay demands and risk a longer-term hit from persistently higher inflation, Jeremy Hunt has insisted

- Larry Elliott, Richard Partington

Speaking in Washington DC, the chancellor said he "completely understood" public anger at the high cost of living but said the impact of rising prices would be longer and more damaging if ministers acceded to "hard to justify" pay demands.

The chancellor accepted thatpublic sector strikes had been a factor in the flatlining of growth in February and said the current four-day strike by junior doctors was "regrettable".

Hunt, who is attending the spring meetings of the International Monetary Fund and World Bank was speaking after it emerged that the economy recorded growth of 0.0% in February.