The Spectator

Rachel Reeves has proved that strikes pay

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issue 03 August 2024

Keir Starmer and Rachel Reeves were adamant that economic growth would be their first priority in government. It is hard to square that with the decisions the Chancellor has announced this week.

The Chancellor claims to have discovered a £21.9 billion ‘black hole’ in the nation’s finances, yet she has created the largest part of that sum by deciding to spend £9.4 billion on inflation-busting pay settlements for public-sector workers without asking for reforms in return.

This, it seems, is the first Reeves doctrine: pay now to avoid strikes later

Junior doctors are to receive a rise of more than 20 per cent, spread over two years. But it is also the way that Reeves has justified the move that may well cause her trouble in the future. The cost of not awarding these rises is even greater, she argued – her implication being that the unions would impose strikes.

Set aside the fact that the junior doctors are not underpaid once their generous pensions are factored in.

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