Ministers have recommended NHS workers, police officers, teachers and judges are all given a 3.5% pay rise for the next financial year.
Government departments have written to the independent pay review bodies of each sector to submit their evidence and say what figure is deemed affordable by them and the Treasury.
But a number of unions are calling for much higher pay awards for the last financial year before negotiations even begin for 2023/24, and the figure for the following 12 months may not meet expectations.
Starting with the NHS – including doctors and dentists – the Department for Health and Social Care said: “Through the current financial settlement provided by HM Treasury to the department and reprioritisation decisions, funding is available for pay awards up to 3.5%.”
The document said anything above this level “would require trade-offs for public service delivery or further government borrowing at a time when headroom against fiscal rules is historically low and sustainable public finances are vital in the fight against inflation”.
Rachel Harrison, national secretary for the GMB union that represents ambulance workers and other NHS staff, called the offer “a disgrace”.
“Today’s submission to the pay review body shows this government’s true colours,” she said.
“Ambulance workers – and others across the NHS including cleaners, porters and care workers – who are the backbone of the health service deserve better.
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“Ministers have no intention of recognising the true value of the entire workforce. It’s a disgrace and will do nothing to end GMB’s NHS and ambulance strikes.
“This backroom deal with some sections of the workforce is a tawdry example of ministers playing divide and rule politics with people’s lives.”
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0:34
November 2022: ‘Inflation-busting pay rises are unaffordable’
Unison’s head of health, Sara Gorton, said the government “couldn’t have done better than this” if it was actively trying to worsen the NHS crisis and warned it “could prove the final straw” for staff questioning whether to leave the NHS.
She called for pay talks for all health unions as she hit out at the government for only meeting with the RCN.
“Ministers need to start behaving like grown-ups and up their game substantially,” she added.
Police budget
The recommendation from the police came from the Home Office, which pointed to forces having “previously indicated that a pay award above 2% for 2023/24 may be affordable”.
The document said the department was carrying on discussions with the National Police Chiefs’ Council and Association of Police and Crime Commissioners but added: “Considering the additional funding available from the police funding settlement for 2023/24, and forces seeking to maximise efficiencies, our current assessment is that there is scope for forces to budget up to a 3.5% pay award within the existing settlement.”
For teachers, the document from the Department for Education said a 3.5% rise – including 3% awards for experienced teachers and raising starting salaries to £30,000 – “will be manageable within schools’ budgets next year, on average, following the additional funding provided at autumn statement”.
But ministers also said the amount available could be impacted by energy costs faced by schools adding: “It is difficult to forecast energy costs. Different energy scenarios mean that more headroom could be available than the 3.5% currently estimated.
“This could allow for additional investment in areas which benefit pupils, including, for example, a higher pay award.”
The National Education Union joint secretary, Kevin Courtney, said he was “pleased” the government is offering formal talks and he hopes it means they are willing to talk about pay after previous talks this year have failed to result in an offer.
But he said their offer of talks “still contains no suggestion that they are willing to talk about pay rises this year”.
Mr Courtney added that the Department for Education’s suggestion of a 3% pay rise for experienced teachers is less than the current inflation forecast for quarter three year so will amount “to a further pay cut”.
He said there was nothing in the letter to suggest they should call off next week’s teacher strikes but there is still time for an offer to be made before the union’s national executive meets this Saturday.
And when it came to judges, the Ministry of Justice proposed that “pay for all judicial office holders should increase by 3.5% in 2023/24”, adding it would cost £23m.
Global financial markets gave a clear vote of no-confidence in President Trump’s economic policy.
The damage it will do is obvious: costs for companies will rise, hitting their earnings.
The consequences will ripple throughout the global economy, with economists now raising their expectations for a recession, not only in the US, but across the world.
The court ruled to uphold the impeachment saying the conservative leader “violated his duty as commander-in-chief by mobilising troops” when he declared martial law.
The president was also said to have taken actions “beyond the powers provided in the constitution”.
Image: Demonstrators stayed overnight near the constitutional court. Pic: AP
Supporters and opponents of the president gathered in their thousands in central Seoul as they awaited the ruling.
The 64-year-old shocked MPs, the public and international allies in early December when he declared martial law, meaning all existing laws regarding civilians were suspended in place of military law.
Image: The court was under heavy police security guard ahead of the announcement. Pic: AP
After suddenly declaring martial law, Mr Yoon sent hundreds of soldiers and police officers to the National Assembly.
He has argued that he sought to maintain order, but some senior military and police officers sent there have told hearings and investigators that Mr Yoon ordered them to drag out politicians to prevent an assembly vote on his decree.
His presidential powers were suspended when the opposition-dominated assembly voted to impeach him on 14 December, accusing him of rebellion.
The unanimous verdict to uphold parliament’s impeachment and remove Mr Yoon from office required the support of at least six of the court’s eight justices.
South Korea must hold a national election within two months to find a new leader.
Lee Jae-myung, leader of the main liberal opposition Democratic Party, is the early favourite to become the country’s next president, according to surveys.
While the UK’s FTSE 100 closed down 1.55% and the continent’s STOXX Europe 600 index was down 2.67% as of 5.30pm, it was American traders who were hit the most.
All three of the US’s major markets opened to sharp losses on Thursday morning.
Image: The S&P 500 is set for its worst day of trading since the COVID-19 pandemic. File pic: AP
By 8.30pm UK time (3.30pm EST), The Dow Jones Industrial Average was down 3.7%, the S&P 500 opened with a drop of 4.4%, and the Nasdaq composite was down 5.6%.
Compared to their values when Donald Trump was inaugurated, the three markets were down around 5.6%, 8.7% and 14.4%, respectively, according to LSEG.
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Worst one-day losses since COVID
As Wall Street trading ended at 9pm in the UK, two indexes had suffered their worst one-day losses since the COVID-19 pandemic.
The S&P 500 fell 4.85%, the Nasdaq dropped 6%, and the Dow Jones fell 4%.
It marks Nasdaq’s biggest daily percentage drop since March 2020 at the start of COVID, and the largest drop for the Dow Jones since June 2020.
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5:07
The latest numbers on tariffs
‘Trust in President Trump’
White House press secretary Karoline Leavitt told CNN earlier in the day that Mr Trump was “doubling down on his proven economic formula from his first term”.
“To anyone on Wall Street this morning, I would say trust in President Trump,” she told the broadcaster, adding: “This is indeed a national emergency… and it’s about time we have a president who actually does something about it.”
Later, the US president told reporters as he left the White House that “I think it’s going very well,” adding: “The markets are going to boom, the stock is going to boom, the country is going to boom.”
He later said on Air Force One that the UK is “happy” with its tariff – the lowest possible levy of 10% – and added he would be open to negotiations if other countries “offer something phenomenal”.
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How is the world reacting to Trump’s tariffs?
Economist warns of ‘spiral of doom’
The turbulence in the markets from Mr Trump’s tariffs “just left everybody in shock”, Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions in Boston, told Reuters.
He added that the economy could go into recession as a result, saying that “a lot of the pain, will probably most acutely be felt in the US and that certainly would weigh on broader global growth as well”.
Meanwhile, chief investment officer at St James’s Place Justin Onuekwusi said that international retaliation is likely, even as “it’s clear countries will think about how to retaliate in a politically astute way”.
He warned: “Significant retaliation could lead to a tariff ‘spiral of doom’ that could be the growth shock that drags us into recession.”
It comes as the UK government published a long list of US products that could be subject to reciprocal tariffs – including golf clubs and golf balls.
Running to more than 400 pages, the list is part of a four-week-long consultation with British businesses and suggests whiskey, jeans, livestock, and chemical components.
Meanwhile, Prime Minister Sir Keir Starmer said on Thursday that the US president had launched a “new era” for global trade and that the UK will respond with “cool and calm heads”.
It also comes as Canadian Prime Minister Mark Carney announced a 25% tariff on all American-imported vehicles that are not compliant with the US-Mexico-Canada trade deal.
He added: “The 80-year period when the United States embraced the mantle of global economic leadership, when it forged alliances rooted in trust and mutual respect and championed the free and open exchange of goods and services, is over. This is a tragedy.”