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Labour Government Considers Above-Inflation Public Sector Pay Rises

Chancellor Rachel Reeves weighs 5.5% increase for teachers and NHS staff amid fiscal challenges.

  • Independent pay review bodies recommend 5.5% pay rise for public sector workers.
  • Labour faces a potential £10bn shortfall if the recommendations are implemented.
  • Chancellor Reeves emphasizes the importance of balancing the budget while addressing pay disputes.
  • Failure to meet pay demands could lead to strikes and recruitment challenges in key sectors.
  • Labour's fiscal strategy includes a review of pensions to unlock investment for economic growth.
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