UK government clashes with unions over public sector pay

Downing Street faces conflict with trade unions over public sector pay, maintaining that no extra funding will be provided for salary increases exceeding 2.8% as recommended by pay review bodies. Despite recommendations for higher raises for teachers and NHS workers, the government, already grappling with budget constraints, may need to finance any shortfall through cuts elsewhere. Unions are poised to consider industrial action if their demands for fully funded pay rises above inflation are not met, posing a challenge for Prime Minister Sir Keir Starmer and Chancellor Rachel Reeves.