Labour facing moment of truth over tax pledges, economists warn
by Peter Walker Senior political correspondent from Economics | The Guardian on (#6PCN4)
Experts say 5.5% pay increase for public sector not consistent' with spending plans that rule out tax rises
Labour is fast approaching a moment of truth over its election pledges on tax and spending, experts have warned, after Rachel Reeves indicated the government could agree above-inflation pay rises for public sector staff.
The chancellor promised a full statement on pay board recommendations that teachers and NHS workers should receive 5.5% pay awards, ahead of an autumn budget that is set to be one of the most difficult economic balancing acts in years.
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