MNI BRIEF: Proposed UK Public Pay Review Rise Fully Accepted

MNI (LONDON) - New UK finance secretary, Chancellor of the Exchequer Rachel Reeves, said that she was accepting the Pay Review Bodies' proposed increases in public sector pay in full at a cost of GBP9 billion, of note to Bank of England policymakers as they meet this week.

Reeves said that having come into the Treasury following Labour's June election victory that she had found a GBP22 billion overspend which had not been scored in the public finance forecasts. She set out measures to reduce this by GBP5.5 billion this fiscal year and GBP8 billion next.

Reeves also said that the next UK Budget would be published on October 30. 

She added that she was launching a new fiscal framework with a three-year government departmental spending review alongside the Budget and that under this new framework future spending reviews would take place every two years with a three-year horizon.