New UK spending row as Rishi Sunak puts squeeze on public sector salaries

Chancellor to announce pay restraints despite huge boost being unveiled for armed forces

The chancellor, Rishi Sunak, is preparing to announce a renewed squeeze on public sector pay in next week’s government spending review in response to the economic shock of the coronavirus pandemic.

Government sources said an announcement on pay restraint would be part of the mini-budget on Wednesday, as part of plans to launch a Whitehall savings drive to tackle record levels of government borrowing incurred during the crisis.

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The Guardian

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