Is Rachel Reeves becoming the new Liz Truss?

[Rockets]

2.5 Public sector pay

At SR21 the government set overall budgets in cash terms on an assumption that pay for public sector workforces would increase by around 3%, 2%, and 2% respectively in the three years covered.

Pay for most frontline public sector workers including NHS staff, teachers, police, armed forces and prison officers is set based on recommendations from independent Pay Review Bodies (PRBs). These recommendations have responded to higher levels of wage growth across the wider economy and so actual pay awards across PRB workforces increased by an average of 5% in 2022-23, and 6% in 2023-24.^{[footnote 11]}

This – alongside some exceptional pay increases agreed outside the PRB process and pay awards across the Civil Service – has meant that public spending on pay is expected to be around £11-12 billion higher across central government departments in 2024-25 than it was projected to be at SR21, even before accounting for 2024-25 pay awards.^{[footnote 12]}

[Sephiroth]

That doesn’t contextualise it’s part in the 22 billion black hole at all 

However

 

“

The £21.9 billion was a net figure. Gross additional pressures totalling £35.3 billion were identified by the Treasury, and approximately £13.4 billion of these pressures were then offset by a combination of reserve funds and other allowances.

The additional pressures identified were as follows:

• 2024-25 public sector pay awards (£9.4bn) 

”

[Rockets]

It’s from the Treasury report…https://www.gov.uk/government/publications/fixing-the-foundations-public-spending-audit-2024-25/fixing-the-foundations-public-spending-audit-2024-25-html

 

1. Executive summary

On 8 July, the Chancellor of the Exchequer announced that she had instructed Treasury officials to undertake a rapid audit of public spending. This document sets out the outcome of the audit, the immediate action the government is taking in response, and the long-term measures being introduced to restore public spending control.

The audit carried out by the Treasury shows that the forecast overspend on departmental spending is expected to be £21.9 billion above the resource departmental expenditure limit (RDEL) totals set by the Treasury at Spring Budget 2024.^{[footnote 1]},^{[footnote 2]}