Strike threat after PM rules out funds for above-inflation pay increases

SIR Keir Starmer is heading for a showdown with unions after he ruled out further increases in education and NHS budgets to fund inflationbusting pay rises.

- By Jonathan Walker

Schools and hospitals could be hit by strikes after unions warned they would ballot members on industrial action.

Pay review bodies are reportedly recommending rises of as much as 4% for teachers and 3% for NHS workers but the Government has budgeted for 2.8% for all public sector workers in keeping with the rate of inflation.

Last night the Prime Minister's official spokesman said: “There’ll be no additional funding for pay if recommended awards exceed what departments can afford.”

Cuts

The increases could still go ahead but would have to be funded partly from existing budgets. This would mean schools and NHS services making cuts elsewhere, which unions say is unacceptable.