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UK Finance Minister Rachel Reeves expressed on Sunday her willingness to grant pay rises that may exceed current inflation rates to nearly two million public sector employees to avoid widespread strikes in the public sector.
The move comes as two pay review advisory bodies recommended a 5.5% pay rise for 460,000 teachers and 1.4 million NHS staff.
Reeves acknowledged the value of public service workers, expressing concern about the costs associated with protracted disputes with unions and the challenges of hiring new employees.
Labour, which won a large majority in the general election earlier this month, had pledged a decade of “national regeneration” without increasing income tax, corporation tax or value-added tax rates.
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