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PAYING THE PRICE

Hefty public sector pay rises push Government debt up £4.1billion more than expected

Interest payments on debt also shot up to £9.1billion last month in the worst October since monthly figures began in 1997
a woman holding a sign that says pay restoration for doctors

HEFTY pay rises for public sector workers pushed the Government’s debt bill up £4.1billion more than expected.

Borrowing last month his £17.4billion - the second highest October since records began in 1993 and far beyond the £13.3billion forecast by economists.

Shadow Chancellor Mel Stride said of the debt hike: 'They are a direct result of Labour’s decision to hand out inflation busting pay rises'
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Shadow Chancellor Mel Stride said of the debt hike: 'They are a direct result of Labour’s decision to hand out inflation busting pay rises'Credit: Getty

Chancellor Rachel Reeves was last night criticised for handing bumper salary boosts to striking union members like junior doctors and train drivers.

Shadow Chancellor Mel Stride said: “They are a direct result of Labour’s decision to hand out inflation busting pay rises to their union paymasters without any reforms in return.”

Interest payments on debt also shot up to £9.1billion last month in the worst October since monthly figures began in 1997.

Downing Street said they expected borrowing to rise as they set about plugging a £22billion “black hole” in the public finances.

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The Chancellor claimed to have found a series of financial timebombs left by the Tories that she claimed forced her to make tough choices on spending. 

In a controversial move Ms Reeves also axed winter fuel payments from OAPs who do not receive pension credit.

But Ms Reeves did announce inflation-busting pay rises of 5.5 per cent for public sector workers such as teachers, soldiers, police officers and civil servants. 

And junior doctors are in line for a monster 22 per cent wage hike over two years in a bid to end their persistent strike action that is crippling hospitals. 

Hefty pay rises for public sector workers pushed the Government’s debt bill up £4.1billion more than expected
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Hefty pay rises for public sector workers pushed the Government’s debt bill up £4.1billion more than expectedCredit: Getty
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