Reeves hints public sector workers could get above-inflation pay rises

Independent pay review bodies for teachers and NHS staff have reportedly advised increases of about 5.5%

Rachel Reeves has indicated that the government could agree above-inflation pay rises for teachers and other public sector workers, saying that there is a cost to not settling" pay negotiations.

The chancellor, who did not dispute reports that independent pay review bodies for teachers and NHS staff had advised increases of about 5.5% - higher than the current 2% inflation rate - said she would set out full details later in July.