DEAL IS AT A COST

PM at last agrees to rises.. but out of existing budgets | He's accused of robbing Peter to pay Paul' amid cuts fears

- LIZZY BUCHAN, DAVE BURKE and SOPHIE HUSKISSON

RISHI Sunak will take an axe to public services already battered by Tory rule to fund pay rises, critics have warned.

After months of needless wrangling, the PM yesterday finally accepted one million workers in health, education, the military, police and prisons deserved hikes of up to 7%.

But Mr Sunak said the cash will come from existing budgets, sparking fears of a wave of cuts to departments. Only teachers get a "fully funded" rise of 6.5% to see off the threat of mass strikes in the autumn, which unions urged members to accept.

Commons Public Accounts Committee chair Dame Meg Hillier accused Mr Sunak of "robbing Peter to pay Paul".

Unite General Secretary Sharon Graham warned public service bosses were being put "between a rock and hard place" to pay for wage hikes after 13 years of cuts.

She added: "They now have to choose between paying workers a half-decent salary or cutting already underfunded services.