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| NHS staff to see payrises capped | NHS staff to see payrises capped |
| (10 minutes later) | |
| Chancellor Alistair Darling has announced a two-year 1% cap on pay increases for NHS workers. | Chancellor Alistair Darling has announced a two-year 1% cap on pay increases for NHS workers. |
| But he has also pledged to increase spending on NHS services, and said it will continue to rise above inflation after 2011. | But he has also pledged to increase spending on NHS services, and said it will continue to rise above inflation after 2011. |
| All NHS staff received a pay increase of 2.4% this year, and pay will still rise by 2.25% next year, as part of a three year deal. | All NHS staff received a pay increase of 2.4% this year, and pay will still rise by 2.25% next year, as part of a three year deal. |
| The ceiling will kick in the financial year following - 2011-2012. | The ceiling will kick in the financial year following - 2011-2012. |
| Thanks to a three year pay deal agreed prior to the downturn, NHS staff have seen pay increases above interest rates. | Thanks to a three year pay deal agreed prior to the downturn, NHS staff have seen pay increases above interest rates. |
| But after next year's deal comes into force, all further public sector settlements will be capped at 1%. Government contributions to public sector pensions will also be limited, saving £1bn per year, the chancellor said in his pre-budget report. | But after next year's deal comes into force, all further public sector settlements will be capped at 1%. Government contributions to public sector pensions will also be limited, saving £1bn per year, the chancellor said in his pre-budget report. |
| These are all measures aimed at halving the UK's budget deficit in four years. | |
| While confirming that spending would increase, he accepted that the period ahead would be "challenging for our public services". But these he stressed "were in a better state than they have been for decades". | |
| As part of his pre-Budget report, the chancellor also confirmed cuts to "major IT projects", such as the £12.7bn NHS centralised database of people's key medical details. | As part of his pre-Budget report, the chancellor also confirmed cuts to "major IT projects", such as the £12.7bn NHS centralised database of people's key medical details. |