UK public sector pay awards to overtake private sector for first time in four years

CIPD report says businesses face higher costs after tax rises in budget as public sector benefits from above-inflation pay rises

Pay awards for public sector workers in Britain are set to overtake the private sector for the first time in four years, according to a report, amid growing business alarm at the government's tax plans.

After October's budget confirmed above-inflation pay rises for public sector workers and higher taxes on employment, the Chartered Institute of Personnel and Development (CIPD) said there was a growing divide in the outlook for jobs and wages.