Politics latest: Jeremy Hunt ‘lied’ about the state of public finances, chancellor claims | Politics News
Next, we problem the chancellor on her declare that there’s a £22bn black gap in the public funds.
It has been identified that the black gap would have been extra like £11bn had the authorities not made the political alternative to simply accept the unbiased pay assessment our bodies’ suggestions for public sector pay rises in full.
Rachel Reeves replies: “Even it was a £10bn or £11bn black hole, it’s still unforgivable.”
She says it was the Conservative authorities that arrange the pay assessment our bodies, however this yr didn’t give a quantity to them on what was inexpensive, which was not beforehand recognized.
The chancellor additionally says the value of NHS industrial motion final yr was £1.7bn, so “the cost of doing nothing” is “not zero either”.
“The alternative is a situation where we continue to struggle to recruit and retain soldiers and officers in our armed forces, where we continue to struggle to recruit doctors and nurses in our NHS, and where we struggle to retain public sector workers. And that has a cost as well.”
Asked if she made a option to favour public sector staff over pensioners yesterday by massively limiting eligibility for the winter gas cost, Ms Reeves replies: “Their pay has fallen behind pay in the private sector this last decade. It’s the first time they’ve had a real terms pay increase in 10 years. And I think that is right.”
She provides: “We had to make difficult decisions yesterday. And the changes in the Winter Fuel Payment to restrict it to pensioners on Pension Credit was a difficult decision. But it’s one that will save the public purse £1.5bn a year.”
She insists she is “not singling out any group” and there are “more difficult choices to come in the autumn”.
