Published by Global Banking & Finance Review®
Posted on January 2, 2025
1 min readLast updated: January 27, 2026
Rachel Reeves advises UK ministers to consider cuts to frontline services to fund pay rises, with no extra Treasury funding available.
(Reuters) - British finance minister Rachel Reeves has warned ministers that they will have to consider cuts to frontline services if they want to fund above-inflation pay rises for public-sector workers, The Times reported on Thursday.
The Treasury has taken a hardline stance and told ministers that there will be no additional funding and that if independent pay-review bodies recommend bigger rises in earnings, they will have to fund it from within existing budgets, the report said.
(Reporting by Harshita Meenaktshi in Bengaluru; Editing by Leslie Adler)
The article discusses potential cuts to UK frontline services to fund public-sector pay rises, as warned by Rachel Reeves.
Cuts are considered to fund above-inflation pay rises for public-sector workers without additional Treasury funding.
The warning was reported by The Times.
Explore more articles in the Finance category
