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Public sector pay cap under review, No 10 suggests Public sector pay cap under review, No 10 suggests
(about 2 hours later)
The limit on public sector salary increases is being reviewed, Downing Street has signalled.The limit on public sector salary increases is being reviewed, Downing Street has signalled.
The prime minister's spokesman suggested changes to the 1% cap, in place since 2013, could come in the Budget in the autumn. Two cabinet ministers hinted the 1% cap, in place since 2013, could be reconsidered in light of the general election result.
And the prime minister's spokesman suggested to journalists the autumn Budget could herald a change of course.
Downing Street later sought to dampen down the speculation, insisting government policy had not changed.
It comes as Labour attempts to amend the Queen's Speech to call for an end to the cap, although it is not expected to win the vote.It comes as Labour attempts to amend the Queen's Speech to call for an end to the cap, although it is not expected to win the vote.
Earlier Jeremy Corbyn clashed with Theresa May over spending cuts in PMQs. Pay rises for five million public sector workers are set by have effectively been capped at 1% since 2013, before which there was a two-year freeze on pay for all but the lowest-paid workers.
The Labour leader said the Grenfell Tower fire had exposed "the disastrous effects of austerity", citing a "disregard for working class communities" and "the terrible consequences of deregulation"
The PM said "calm determination" not "pointing fingers" was needed.
Pay rises for five million public sector workers have effectively been capped at 1% since 2013, before which there was a two-year freeze on pay for all but the lowest-paid workers.
The Conservatives went into the election pledging to maintain the cap until 2020, but some MPs are now calling for a rethink after the party lost its majority.The Conservatives went into the election pledging to maintain the cap until 2020, but some MPs are now calling for a rethink after the party lost its majority.
Labour says its amendment to the Queen's Speech, which is now being debated in the Commons, is a "test case" of MPs' willingness to oppose further austerity measures.Labour says its amendment to the Queen's Speech, which is now being debated in the Commons, is a "test case" of MPs' willingness to oppose further austerity measures.
It comes after hints by ministers that the cap could be reconsidered in the Budget after the Tories lost their majority at the general election. Speaking during the debate, Conservative MP Andrew Murrison said public sector workers "give far more back to the service than we give to them in terms of the package", adding that he worried the "well of good will" among medical workers would soon run "completely dry".
Taking questions at an event in London, Defence Secretary Sir Michael Fallon said pay rates were "obviously something we have to consider not just for the army but right across the public sector as a whole".Taking questions at an event in London, Defence Secretary Sir Michael Fallon said pay rates were "obviously something we have to consider not just for the army but right across the public sector as a whole".
Transport Secretary Chris Grayling told the BBC's Daily Politics: "We have had to take some tough decisions and in the wake of the general election we are going to have to think through what we do come the next Budget."
A Number 10 source said public sector pay restraint was "one of the tough decisions" the government had had to make but that ministers were going to "listen to the messages that were sent at the election" and said, "we understand that people are weary after years of hard work to re-build the economy".A Number 10 source said public sector pay restraint was "one of the tough decisions" the government had had to make but that ministers were going to "listen to the messages that were sent at the election" and said, "we understand that people are weary after years of hard work to re-build the economy".
The suggestion of a change of policy was welcomed by campaigners.
TUC general secretary Frances O'Grady said: "If the cap is lifted, it will be a massive victory for trade union campaigning."TUC general secretary Frances O'Grady said: "If the cap is lifted, it will be a massive victory for trade union campaigning."
Labour's amendment to the Queen's Speech is also calling for cuts to the police and emergency services to end.Labour's amendment to the Queen's Speech is also calling for cuts to the police and emergency services to end.
The Conservatives are expected to win the vote with Democratic Unionist support.The Conservatives are expected to win the vote with Democratic Unionist support.
Labour's amendment praises the response of the emergency services to the deadly fire in the west London tower block, which killed at least 79 people, as well as to the terror attacks in London and Manchester.Labour's amendment praises the response of the emergency services to the deadly fire in the west London tower block, which killed at least 79 people, as well as to the terror attacks in London and Manchester.
But it calls on the government to recruit more police officers and firefighters and to give the emergency services and other public sector workers a "fair pay rise".But it calls on the government to recruit more police officers and firefighters and to give the emergency services and other public sector workers a "fair pay rise".
Speaking on BBC Radio 4's Today programme, former Conservative minister Sir Oliver Letwin dismissed Labour's amendment as "playing politics".Speaking on BBC Radio 4's Today programme, former Conservative minister Sir Oliver Letwin dismissed Labour's amendment as "playing politics".
But he said "carefully judged" tax increases might be needed to raise money, identifying adult social care as a priority.But he said "carefully judged" tax increases might be needed to raise money, identifying adult social care as a priority.
"It may well be that, in one way or another, a large number of people will have to pay a little more tax if we are going to maintain the trend towards reduced deficits and yet spend a bit more on the crucial public services that do need more spending," he added."It may well be that, in one way or another, a large number of people will have to pay a little more tax if we are going to maintain the trend towards reduced deficits and yet spend a bit more on the crucial public services that do need more spending," he added.
Meanwhile, the latest British Social Attitudes Survey has found an increase in the number of Britons who think the government should raise taxes and increase spending to its highest level since 2004.Meanwhile, the latest British Social Attitudes Survey has found an increase in the number of Britons who think the government should raise taxes and increase spending to its highest level since 2004.
Speaking ahead of the Queen's Speech debate, Mr Corbyn rejected suggestions he was trying to make political capital out of the Grenfell fire, pointing out that the party had called for higher pay and an end to cuts before the disaster. Earlier, during PMQs, Mr Corbyn linked the Grenfell Tower disaster to spending cuts.
"I would have thought the Grenfell fire has concentrated the minds of a lot of people on the wonderful work done by the police, fire and ambulance services," he said. After Mrs May confirmed cladding from 120 high-rise buildings in 37 local authority areas in England had now failed fire safety tests, Mr Corbyn - to an angry reaction from some on the Conservative benches - said this was because cuts to local authority budgets had led to fewer building control and planning inspectors.
Mr Corbyn focused all of his questions on the Grenfell Tower disaster, as Mrs May confirmed cladding from 120 high-rise buildings in 37 local authority areas in England had now failed fire safety tests.
To an angry reaction from some on the Conservative benches, the Labour leader said this was because cuts to local authority budgets had led to fewer building control and planning inspectors.
"We all pay a price," he said, saying there were fewer firefighters in place and that the pay cap had affected recruitment."We all pay a price," he said, saying there were fewer firefighters in place and that the pay cap had affected recruitment.
"What the Grenfell Tower tragedy has exposed is the disastrous effect of austerity."What the Grenfell Tower tragedy has exposed is the disastrous effect of austerity.
"This disregard for working class communities, the terrible consequences of deregulation and cutting corners - I urge the prime minister to come up with the resources needed to test and remove cladding, retrofit sprinklers, properly fund the fire service and the police so that all our communities can feel safe in their own homes.""This disregard for working class communities, the terrible consequences of deregulation and cutting corners - I urge the prime minister to come up with the resources needed to test and remove cladding, retrofit sprinklers, properly fund the fire service and the police so that all our communities can feel safe in their own homes."
Mrs May said the cladding of tower blocks had began under Tony Blair's Labour government, saying this was an issue that had "developed over decades" under successive governments and different councils.Mrs May said the cladding of tower blocks had began under Tony Blair's Labour government, saying this was an issue that had "developed over decades" under successive governments and different councils.
Labour, which focused much of its election campaign on the fall in police numbers since 2010, says it would hire 10,000 new police officers and 3,000 firefighters.Labour, which focused much of its election campaign on the fall in police numbers since 2010, says it would hire 10,000 new police officers and 3,000 firefighters.
It has claimed fire and rescue budgets were cut by 30% between 2010 and 2015, and a further 20% cuts are envisaged between 2015 and 2020.It has claimed fire and rescue budgets were cut by 30% between 2010 and 2015, and a further 20% cuts are envisaged between 2015 and 2020.
A Conservative spokesman said the country was "indebted" to the heroism of the police and emergency services, but Labour's proposed tax rises and higher borrowing would threaten investment in them.A Conservative spokesman said the country was "indebted" to the heroism of the police and emergency services, but Labour's proposed tax rises and higher borrowing would threaten investment in them.
MPs will be asked to approve the Queen's Speech, the government's legislative programme for the next two years, in the House of Commons on Thursday.MPs will be asked to approve the Queen's Speech, the government's legislative programme for the next two years, in the House of Commons on Thursday.
This will effectively amount to a vote of confidence in Mrs May's minority government.This will effectively amount to a vote of confidence in Mrs May's minority government.
The Conservatives' deal with the Democratic Unionists - which will see the Northern Ireland party's 10 MPs line up behind the government in key votes - gives them a working majority of 13 and means they are in little danger of losing.The Conservatives' deal with the Democratic Unionists - which will see the Northern Ireland party's 10 MPs line up behind the government in key votes - gives them a working majority of 13 and means they are in little danger of losing.
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