![Fury as Labour may have to RAISE taxes to cover £10billion bill for public sector pay increases](https://trendinginthenews.com/images/blog/thumbnails/202407/img_2007112902.jpg)
New tax rises on the horizon
Economists have warned that new tax rises might be on the horizon to cover a hefty £10 billion bill for public sector pay rises.
Above-inflation wage bumps recommended
Independent pay review bodies have recommended above-inflation wage bumps for millions of teachers, nurses, and other staff, with suggested 5.5 per cent pay rises for NHS and teaching staff.
Chancellor under pressure
Chancellor Rachel Reeves is facing the challenge of covering the hefty wage bill or potentially dealing with more strikes as unions threaten walkouts.
Worrying financial implications
The wage bill for schools and the NHS alone is estimated to be a staggering £3.5 billion, with the total cost for the entire public sector expected to reach £10 billion.
Tough decisions ahead
Economists have pointed out that the money to cover the pay increases can only come from higher borrowing, increased taxes, or cuts in spending elsewhere.
Union pressure and government response
The National Education Union and other organizations are calling for the government to fund the pay increases, with warnings of strike action if the demands are not met. The government has emphasized the value of public sector workers but noted the challenging fiscal situation ahead.
Political reactions
Political reactions are mixed, with Tory MP Alec Shelbrooke cautioning against inflation increases and Labour's Shadow Treasury Minister Laura Trott holding Labour accountable to their promises, particularly regarding tax increases on working people.
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