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Tax rises ‘inevitable’ after Starmer’s public sector pay rises
- Chancellor Rachel Reeves announced inflation-busting public sector pay rises in May 2025 across various professions in the UK.
- These pay increases follow Labour's acceptance of substantial wage uplifts last year to prevent further strikes and respond to inflation at 3.5%.
- Teachers and dentists will receive 4% increases, resident doctors 5.4% including a £750 payment, NHS staff 3.6%, and armed forces from 3.75% to 4.5%.
- The overall cost of these pay hikes is estimated at £6.9 billion, with public sector net borrowing rising by £1 billion year-on-year to £20.2 billion in April 2025.
- Experts warn further tax rises are inevitable to fund these costs amid low growth and high interest rates, while a leaked memo urges raising taxes rather than cutting spending.
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Rachel Reeves hands out '£6.9bn' in pay rises after £20bn borrowing exposed
Various public sector pay increases were announced today after the Chancellor accepted recommendations put forward by public sector pay review bodies of wage rises above inflation (currently at 3.5%) in the 2025/26 financial year.
·United Kingdom
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Major tax rises are on the way. Bring down the Labour government and bring in a Workers Government now! - Workers Revolutionary Party
‘TAX rises are inevitable’ warned economists yesterday, barely 12 months after Labour’s election pledge of ‘No tax rises’. This is after PM Keir Starmer’s approval of totally inadequate public sector pay rises of 3.25 to 4.5 per cent for public sector workers, with just 6 per cent for junior doctors. However, the Treasury is understood […]
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