It would cost the government around £5bn to match pay to inflation and a further £9bn to undo last year’s reduction in comparison with the private sector, according to the Institute for Fiscal Studies (IFS).
The think tank warned that the short-term borrowing boost would not allow for permanent spending increases, such as increasing public sector pay to match predicted inflation at 5.4% in the next financial year, or cut taxes.
The UK being on course to borrow more than £30bn less than forecast this year, according to the think tank.
The government has recommended offering millions of public sector workers below inflation pay increases. Judges, police officers, teachers, nurses, doctors and dentists in England will be offered a 3.5% pay increase under the current proposal.
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