Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of taking fiscal steps to offset the potential impact of recent public sector pay agreements on the public finances.

No additional central funding has been given to Departments for the 2025/26 pay awards beyond their existing funding allocations, and this will be the case for the remainder of the Spending Review period. This means we will not be borrowing more or raising taxes to fund higher pay awards, nor will there be an impact on the fiscal rules.