Rishi Sunak has challenged union leaders to call off strike action after offering public sector workers pay rises of up to 7 percent.
The prime minister said on Thursday that he has accepted the recommendations from independent pay review bodies, including 6.5 percent increases for teachers in England for 2023-24, which the education unions said would allow them to end their dispute with ministers.
Junior doctors, who began a five-day walkout in England on Thursday, will receive 6 percent rises, along with an additional consolidated £1,250 increase.
Mr. Sunak told a Downing Street press conference that the new pay offer is “final.”
“Today’s offer is final. There will be no more talks on pay. We will not negotiate again on this year’s settlements and no amount of strikes will change our decision.”
Commenting on the ongoing strike organised by the British Medical Association (BMA), he said: “The government has not only made today’s decision on pay. We’ve backed the NHS with record funding, delivered the first ever, fully funded long-term workforce plan, and met the BMA’s number one ask of government, with a pensions tax cut worth £1 billion.
‘Fair Deal’
The prime minister said the pay review bodies’ recommendations are for public sector pay to “go up by a significant amount.”“Now clearly, this will cost all of you as taxpayers more than we had budgeted for. That’s why the decision has been difficult, and why it has taken time to decide the right course of action.”
But he said the accepted recommendations are a “fair deal for the British taxpayer.”
Mr. Sunak insisted that the pay rises will not be funded by more government borrowing.
Funding the Pay Rises
He said the government will raise over a billion pounds to help fund the pay increases by “significantly” raising fees for immigrants’ visa applications and health care.The government said it will raise the immigrant health surcharge to £1,035. Fees will also be increased across a range of immigration and nationality routes, including a rise in the cost of work and visit visas by 15 percent, and increasing the cost of study visas, certificates of sponsorship, wider entry clearance, leave-to-remain, and priority visas among others by at least 20 percent.
But the bulk of the money will have to come from existing budgets.
Mr. Sunak said “it’s not about cuts” but about departments “reprioritising.”
“We are asking departments to reprioritise to support public sector workers and that will mean in other areas—it’s not about cuts, it’s just about focusing on public sector workers’ pay rather than other things.
“And I’m really pleased that the teaching unions specifically have said that this pay offer is properly funded.”
‘Wrecking Ball’
Opposition parties expressed concerns over the impact on public services.Liberal Democrat leader Sir Ed Davey said: “Rishi Sunak is taking a wrecking ball to our public services with these savage cuts.
“He must come clean about the devastating impact this will have on local hospitals and schools across the country.”
Labour’s shadow treasury minister Pat McFadden questioned whether the government will cut back on capital investment in schools and hospitals to fund the increases.
Treasury minister John Glen replied, “The decisions we have made today mean no new borrowing, no cuts to the front line, no new taxes, and no negative impact on inflationary pressures.”
