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Concerns have arisen regarding potential strikes due to the Treasury’s directive that pay increases for NHS staff and teachers must be drawn from existing budgets. This announcement comes as independent pay review bodies for both sectors are expected to propose higher pay rises than initially suggested by government officials.
Reports indicate that these independent bodies may recommend increases around 4% for teachers and approximately 3% for NHS employees, significantly above the government’s planned 2.8%. However, the Treasury has firmly stated that it will not finance these pay rises through borrowing, insisting that any additional funding must come from cuts in other areas.
Government sources have indicated a willingness to accept recommendations from the pay review bodies, though no final decision has been reached. If the proposed increases exceed the allocations set by Shadow Chancellor Rachel Reeves, unions could stage strikes if they feel that the Treasury’s stipulations unduly impact budgets for schools or NHS services.
Labour leader Keir Starmer has expressed hope for a collaborative approach to avoid strikes, highlighting the dedication of NHS workers. He noted, “I don’t want to see strike action, I don’t think anybody wants to see strike action,” indicating a preference for negotiation over conflict.
Starmer emphasized the importance of working constructively with NHS staff to achieve better outcomes rather than repeating the confrontational approach taken by previous governments. He believes that a positive relationship with frontline workers is crucial for both healthcare improvements and overall public satisfaction.
Reactions to the government’s prior budget have been largely negative, with several unions criticizing it as insufficient. The British Medical Association lamented it as a form of “pay erosion” for medical professionals, while Unison categorized the budgetary increases as barely keeping pace with the cost of living.
Meanwhile, the NEU and NASUWT, two prominent teaching unions, have signaled their readiness to strike if additional funding is not made available to support teacher salary increases.
As part of her early actions as chancellor, Reeves had previously endorsed the pay review body’s recommendation of a 5.5% increase for all public sector workers, highlighting the potential repercussions of failing to resolve pay disputes. She warned of the costs associated with industrial action and the challenges in recruiting and retaining qualified staff across essential services.
Care Minister Stephen Kinnock has confirmed that the government is actively reviewing the new recommendations. He stated, “We’re all about putting more money into the pockets of working people, but we do also have to ensure that we are balancing the books.” He urged trade union leaders to engage constructively while recognizing the financial constraints the government faces.
A spokesperson for HM Treasury reiterated the ongoing evaluation of the independent pay review body recommendations, noting, “As is part of the usual process, we are considering recommendations from the independent pay review bodies and will respond in due course.” They also highlighted the previous year’s acceptance of these recommendations, which led to significant real-term pay rises for many workers.
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www.theguardian.com