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
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.
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.
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.
