It is understood that the Labour had only budgeted for a 3 per cent pay rise which has led experts to claim the extra cash needed will have to come from taxes or borrowing.
The Prime Minister Keir Starmer is expected to give an above inflation 5.5 per cent pay rise to teachers and nurses.
The independent pay review bodies which represent over 500,000 teachers and over a million nurses have both recommended pay rises of around 5.5 per cent The Daily Telegraph reports that the government could support an above-inflation but experts have warned that if the 5.5 per cent pay rise was given to every worker in the public sector it would cost £10billion.
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