‘No blank cheques’: Rachel Reeves defends pay deals with unions

Chancellor rebuts Tory accusation she will be a soft touch and hints at tweak to debt rule to allow more borrowing

Rachel Reeves has insisted there will be no blank cheques" for public sector unions amid Conservative claims that the government's attempt to end long-running strikes has made it a soft touch.

The chancellor said there had been no caving in to train drivers and junior doctors, and defended her decision to accept recommendations of pay review bodies for real-terms increases for the police, teachers and the armed forces on the grounds that they were needed to recruit and retain staff.