Katy Balls Katy Balls

Philip Hammond holds his nerve on public sector pay

Oh to be a fly-on-the-wall at today’s Cabinet meeting. After growing calls from ministers for Theresa May to ditch the public sector pay cap, last night the Chancellor put his foot down. In a speech to the CBI, Philip Hammond said that while the public are naturally ‘weary’ after seven years of austerity, now is not the time to ‘take our foot off the pedal’:

‘After seven long and tough years, the high wage, high growth economy for which we strive is tantalisingly close to being within our grasp. It would be easy to take our foot off the pedal. But instead we must hold our nerve and maintain our focus resolutely on the prizes that are so nearly within reach.’

Referring to the cap specifically, Hammond said the Government’s approach to the public sector pay cap had not changed:

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