MILLIONS of teachers, doctors and other members of the public sector are set to receive an above-inflation pay rise despite a £20bn black hole in government finances.
Chancellor Rachel Reeves will reportedly green light recommendations of public sector pay bodies for pay increases on Monday as she unveils the findings of a fresh probe into the state of the government’s wallet.
The NHS and teaching pay bodies are reported to have recommended a 5.5% rise in pay, according to a report in The Guardian.
Similar advice was also said to have been given by other pay review bodies, such as doctors and dentists, armed forces, prisons and police officers.
It is thought the bump in pay would help the government deal with staff shortages and cool the threat of industrial action.
Ms Reeves will reportedly confirm the pay increases as she sets her case on Monday that the Conservatives left the government with a troubling inheritance, including a £20bn black hole in public finances.
There are fears the review will reportedly pave the way for tax raids ahead of the Autumn Budget.
While a date for the Budget hasn’t yet been set, government big -wigs are already said to be eyeing up a hike on inheritance and capital gains tax.
Sir Keir Starmer has previously vowed that VAT, income tax and national insurance will not go up this parliament.
A Labour source previously told The Sun: “On Monday, the British public are finally going to see the true scale of the damage the Conservatives have done to the public finances.”
“They spent taxpayers’ money like no tomorrow because they knew someone else would have to pick up the bill.
“It now falls to Labour to fix the foundations of our economy and that work has already begun.”
It has been predicted that an expected rise in public sector pay will put additional pressure on the public purse.
The Institute for Fiscal Studies estimated that if there were a 5.5% increase across all public sector professions, it would cost about £10billon, The Guardian also said.
Earlier this week shadow Chancellor Jeremy Hunt slammed Labour’s claim the Conservatives trashed the economy as “nothing but a fabrication”.
He accused the government of feigning surprise at the state of the economy to avoid making difficult, cost-saving calls on public sector pay and welfare reform.
Mr Hunt said: “The books have been wide open since the Office for Budget Responsibility was set up 14 years ago.
“They show an economy that has turned the corner and a deficit one-third of that left behind by Labour – and not this nonsense the Chancellor is peddling.
“The reality is she does not want to take the difficult decisions on pay, productivity or welfare reform that would have meant we could live within our means and is laying the ground for tax rises.”
Mr Hunt added: “After Labour promised 50 times not to do this, they will find trust in the new government evaporates sooner than they expect.”
The Sun has approached The Treasury for comment.
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