SIR Keir Starmer is set to wage war with militant unions demanding inflation-busting pay deals.
Finances cannot fund bumper rises for public sector staff, he warned — paving the way for more strikes.
The PM’s intervention came as junior doctors start talks with the Government as they try to avert walkouts across the NHS.
Asked if he would give unions bumper deals, he replied: “No.”
He said at the Nato summit in Washington: “Obviously, there are a number of pay settlements to be gone through on the annual basis. But the finances are in a very poor state.”
Eight pay review bodies are expected to report to the new Cabinet in weeks with recommendations.
They cover 45 per cent of the public sector, including the Armed Forces and teachers.
However pay deals are ultimately decided by ministers.
Unions representing millions of workers are likely to revolt.
Daniel Kebede, general secretary of the National Education Union, said: “This is not what we want to hear from the new Prime Minister.
“We expect an above-inflation teacher pay offer that is fully funded.”
Unite general secretary Sharon Graham warned: “Experienced staff are leaving the NHS in droves.
“If we don’t sort out the crisis of people, we won’t sort out the crisis in the NHS.”
The Institute for Fiscal Studies estimates the Government must find £6-7billion to prevent public sector pay falling further behind private sector workers.
Chancellor Rachel Reeves said she faces difficult decisions following the “mess” left by the Tories.
