No extra money for NHS and school pay rises, says Treasury

Pay rises for NHS staff and teachers must be paid from existing budgets, the Treasury has warned, setting up the potential for strike action.

- Jessica Elgot Raphael Boyd

Separate independent pay review bodies for teachers and NHS staff in England are reportedly set to make higher pay rise recommendations than ministers had suggested.

Both the NEU and NASUWT teaching unions have threatened strike action if schools do not get extra funding to pay for the salary increase for teachers. The Royal College of Nursing (RCN) has also warned it will not accept pay awards taking resources from the frontline.

However, the Guardian understands that the Treasury has said it will categorically not fund the pay rises by borrowing, meaning that cuts to other budgets must be made.