No.10 stands firm over pay rise call

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.

- CHRISTOPHER MCKEON

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.

Sir Keir Starmer said no decisions had been made on the recommendations, saying "we are not at that stage of the process".

Downing Street was clear yesterday that the Government would not be providing any extra funding for increases above 2.8%.

The Prime Minister's official spokesman said: "There will be no additional funding for pay if recommended awards exceed what departments can afford."

Last year, the Government accepted the pay review bodies' recommendations of increases of between 4.75% and 6% in an effort to end long-running strikes across the public sector.