Big public sector pay rises risk fuelling inflation and undermining the Government’s plans to hire more doctors and teachers, the Treasury has said.
In a warning shot to public sector pay bodies, the Exchequer said on Tuesday that significant increases would “materially impact” plans to recruit more staff.
The public sector is large enough that pay rises there could drive inflation. Happened in the 70s, no? And isn’t that an interesting comment on the minimum wage thing – if we pay more we pay fewer?