UK Treasury tells ministers not to expect bailouts from its reserve fund

Departments told to manage their own cost pressures as finance ministry seeks to curb overuse of contingency fund

Cabinet ministers have been told they will not be able to use the Treasury reserve to fund public sector pay rises and cannot access it unless there are exceptional circumstances.

In the run-up to the budget, James Murray, the chief secretary to the Treasury, has written to ministers setting out a decision to clamp down on departments' access to the reserve.