Rishi holds out against bumper pay deals as Covid bill hits £376BILLION

Posted on

Rishi holds out against bumper pay deals as Covid bill hits £376BILLION – together with one other £4BILLION propping up railways: Chancellor warns there may be NO new money for additional public sector hikes

  • NAO has given last replace on the Covid price with spend attributable to hit £376billion
  • Extra prices since September embrace £4billion extra to bail out rail operators 
  • Rishi Sunak has warned ministers to not count on additional money for large pay hikes

information/rishi-sunak/index.html” id=”mol-c6c154f0-f2c9-11ec-b442-5be0f2934c94″>Rishi Sunak warned he is not going to splash the money on public sector pay hikes as we speak as the £376billion price of Covid have been laid naked.

The Chancellor underlined the must be ‘accountable’ with the general public funds after the Treasury advised Whitehall departments any additional wage boosts have to be discovered from inside present budgets.

The intervention got here as the federal government’s spending watchdog revealed its last replace on the bill for the response to the pandemic.

The eye-watering complete is now £376billion – notably together with one other £4billion in latest months to maintain emergency bailouts in place for practice operators this yr. Rail unions are on strike demanding a 7 per cent pay hike that the federal government says is unaffordable.   

The parlous state of the federal government’s books was additionally revealed in new figures displaying it borrowed £14billion in May, and curiosity funds on the £2.4trillion debt mountain hit a document £7.6billion attributable to hovering inflation. 

Covid spending is now anticipated to complete £376billion – notably together with one other £4billion in latest months to maintain emergency bailouts in place for practice operators this yr

Mr Sunak (pictured in Downing Street yesterday) has underlined the need to be 'responsible' with the public finances after the Treasury told Whitehall departments any extra wage boosts must be found from within existing budgets

Mr Sunak (pictured in Downing Street yesterday) has underlined the must be ‘accountable’ with the general public funds after the Treasury advised Whitehall departments any additional wage boosts have to be discovered from inside present budgets

news” data-version=”2″ id=”mol-b9d54480-f2ca-11ec-b442-5be0f2934c94″ data-permabox-url=”https://www.dailymail.co.uk/news/article-10944963/Rishi-holds-against-bumper-pay-deals-Covid-bill-hits-376BILLION.html” wp_automatic_readability=”12.37658674189″>

UK borrows one other £14bn as debt curiosity soars  

The authorities borrowed one other £14billion in May regardless of the rising tax burden, as information/inflation/index.html” id=”mol-bafea950-f2ca-11ec-b442-5be0f2934c94″>inflation despatched curiosity funds hovering.

The prices of servicing the near-£2.4trillion debt mountain surged to £7.6billion, a document for the month.

That helped offset the rise in revenue for the federal government from increased taxes. 

Chancellor information/rishi-sunak/index.html” id=”mol-bafea951-f2ca-11ec-b442-5be0f2934c94″>Rishi Sunak insisted the grim figures underlined the must be ‘accountable with the general public funds’ – as unions clamour for big pay rises to cope with the surging information/cost-of-living-crisis/index.html” id=”mol-bafed060-f2ca-11ec-b442-5be0f2934c94″>price of residing.

There are worrying indicators that the financial system is on the verge of slipping into recession as the Ukraine disaster and Covid aftermath bites. 

Mr Sunak made provision for pay rises of round 3 per cent within the spending evaluation in November, however on the time inflation was anticipated to common across the similar stage this yr. It is now prone to be greater than double that.

However, in accordance with the Times, ministers have been given the message that there might be ‘no new money‘ for increased wages.   

Responding to the general public funds figures as we speak, Mr Sunak mentioned: ‘Rising inflation and growing debt curiosity prices pose a problem for the general public funds, as they do for household budgets.

‘That is why we’re taking a balanced method – utilizing our fiscal firepower to supply focused assist with the price of residing, whereas remaining on observe to get debt down.

‘Being accountable with the general public funds now will imply future generations aren’t burdened with even increased debt repayments, and we will safe our financial system for the long run.’

The National Audit Office’s Covid last replace to its prices tracker confirmed that the bill has risen by £6billion since September, to £376billion.

Support for companies, together with furlough and the Bounce Back Loan scheme, had the best complete forecast price of £147billion – though that was down £7billion from September.

health and social care spending is estimated at nearly £89billion, £5billion greater than beforehand anticipated. 

Public Accounts Committee chair Meg Hillier mentioned: ‘The pandemic has had a devastating impression on individuals’s lives. While the human price is incalculable, the price of authorities’s COVID measures is near £400billion. Many of those measures may have price implications for years to come back.

‘Visibility of COVID spending is essential for correct accountability, so the taxpayer can problem authorities on how their money is spent.’

The prices of servicing the near-£2.4trillion debt mountain surged to £7.6billion, a document for the month

Advertisement

news/article-10944963/Rishi-holds-against-bumper-pay-deals-Covid-bill-hits-376BILLION.html?ns_mchannel=rss&ns_campaign=1490&ito=1490″>Source Article

Leave a Reply

Your email address will not be published.