Bigger public sector pay rises unaffordable, chancellor says

Jeremy Hunt says he will not improve pay offer despite surprise budget surplus

Jeremy Hunt has insisted the government is unable to afford a bigger pay increase for nurses and other public sector workers at next month's budget, despite official figures showing an unexpected boost for the exchequer in January.

Batting away calls for an improved pay offer to break months of strike deadlock, the chancellor said the government finances still remained under pressure after recording a surprise 5.4bn surplus last month.