Reports which first appeared in The Times suggest independent pay review bodies have recommended the 5.5 per cent rise for teachers and around 1.3 million NHS staff.
Speaking on the BBC’s Sunday With Laura Kuenssberg, the Chancellor stressed that her spending rules are “non-negotiable” and said she values public service workers and “people won’t have long to wait for a decision”.
She added: “There is a cost to not settling, a cost of further industrial action, and a cost in terms of the challenge we face recruiting.
“We will do it in a proper way and make sure the sums add up.”
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