Rishi Sunak hints at blocking public sector pay rises as he attacks ‘completely unreasonable’ doctors’ strikes
Rishi Sunak has hinted he will ignore recommendations for public sector pay rises, saying workers “need to recognise the economic context we are in”.
Reports surfaced over the weekend that the prime minister planned to block upcoming proposals from public sector pay bodies in an attempt to tackle soaring inflation in the country.
And health minister Helen Whately refused to commit to the uplift during an interview with Sky News on Monday morning.
Unions and opposition parties have hit out at the rumoured decision, saying inflation was not being driven by the wages of nurses and teachers, but by the economic decisions taken by the Conservatives over their 13 years in power.
Politics live: ‘Seriously?’ – Labour responds to lack of commitment on pay rises
Asked by broadcasters today whether public sector pay was a major driver of inflation, Mr Sunak said: “Government borrowing is something that would make inflation worse, so the government has to make priorities and decisions about where best to target our resources.
“And that’s why when it comes to public sector pay, we need to be fair, but we need to be responsible as well.”
Pay review bodies or PRBs take evidence from across sectors like the NHS and education each year, as well as submissions from government, before saying what wage rises should be introduced for the following 12 months.
Amid anger from unions about the figures failing to match inflation last year, Health Secretary Steve Barclay insisted it was right for ministers to “continue to defer to that process to ensure decisions balance the needs of staff and the wider economy”.
The PRBs’ recommendations are expected to be published next month, alongside formal pay offers, with reports claiming they could be around 6% for the health service and 6.5% for teachers.
But while being questioned on public sector pay, Mr Sunak said: “It is important that we don’t make the inflation situation worse and it is important we prioritise the things that are right.
“I am making the decisions that are right for the long term and that is what I am going to continue doing.”
Government pay position offers Labour opportunity and challenge
The government’s wavering position on NHS pay presents Labour with both an opportunity and a challenge.
On the plus side, they can point to the fact the position of ministers seems at odds with what they were saying back in December.
Then, the government argument went that it was not for them to decide how much nurses, teachers, or police officers should be paid because this is determined by independent pay review bodies.
Now, they are suggesting the opposite – with health minister Helen Whately the latest to refuse to commit to following recommendations if the government judges they are not affordable.
Labour’s Emily Thornberry was withering in her interview with Sky News this morning: “I mean, seriously – do they really have a policy at all?”
Highlighting government inconsistency on political issues of this sort is exactly what you would expect an opposition party to do.
But it’s not entirely straightforward for Labour. They know there are questions that follow which could be challenging for the party.
Would they commit, for example, to following all pay review body recommendations in power?
Around half of public sector workers are covered by them (civil servants are not), but they are not binding, although Conservative governments have ignored their recommendations more than Labour did in power.
And given Labour agrees with the government that inflation needs to come down, and agrees with the Bank of England that interest rates needed to rise – how comfortable will they be supporting potentially inflationary public sector pay hikes?
The reports come while strike action by junior doctors over pay and conditions continues, with unions planning a five-day walk out next month.
Calling for pay restoration equating to a 35% rise, the British Medical Association (BMA) said wages had decreased by more than a quarter since 2008 when inflation was taken into account, and many doctors were burnt out from an increasing workload.
But when asked why he wouldn’t pay the profession more, the PM hit out at the industrial action and called the BMA’s demands “totally unreasonable”.
Mr Sunak said: “I think everyone can see the economic context we are in, with inflation higher than we’d like it, and it is important in that context that the government makes the right and responsible decisions in things like public sector pay.
“It is very disappointing that junior doctors have taken the decision that they have done. Over half a million people’s treatments have already been disrupted and I don’t think anyone wants to see that carry on – it’s just going to make it harder to bring waiting lists down.
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Labour MP Emily Thornberry has accused the government of “vacillating” between paying attention to public sector pay review bodies or not.
He added: “And I think people need to recognise the economic context we are in, and I am going to make the decisions that are the right ones for the country.
“That’s not always easy, people may not like that, but those are the right things for everybody, that we get a grip on inflation, and that means the government not excessively borrowing too much money and being responsible with public sector pay settlements.
“That is what I am going to do and I would urge everyone to see that is the right course of action.”
Last week, the Office for National Statistics confirmed inflation was stuck at 8.7% and the Bank of England raised interest rates to 5% – a 15-year high.
In today’s Saudi Arabia, convention centres resemble palaces.
The King Abdul Aziz International Conference Centre was built in 1999 but inside it feels like Versailles.
Some might call it kitsch, but it’s a startling reflection of how far this country has come – the growth of a nation from desert bedouins to a vastly wealthy regional powerbroker in just one generation.
Trump latest: President signs huge arms deal with Saudi Arabia
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Trump signs deal with Saudi Arabia
At a bar overnight, over mocktails and a shisha, I listened to one young Saudi man tell me how his family had watched this transformation.
His father, now in his 60s, had lived the change – a child born in a desert tent, an upbringing in a dusty town, his 30s as a mujahideen fighting the Soviets in Afghanistan, his 40s in a deeply conservative Riyadh and now his 60s watching, wide-eyed, the change supercharged in recent years.
The last few years’ acceleration of change is best reflected in the social transformation. Women, unveiled, can now drive. Here, make no mistake, that’s a profound leap forward.
Through a ‘western’ lens, there’s a way to go – homosexuality is illegal here. That, and the murder of Saudi journalist Jamal Khashoggi, are no longer openly discussed here.
Bluntly, political and economic expedience have moved world leaders and business leaders beyond all that.
Read more:
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Trump visit is ‘about opulence’
The guest list of delegates at the convention centre for the Saudi-US Investment Forum reads like a who’s who of America’s best business brains.
Signing a flurry of different deals worth about $600bn (£451bn) of inward investment from Saudi to the US – which actually only represent intentions or ‘memorandums of understanding’ at this stage – the White House said: “The deals… represent a new golden era of partnership between the United States and Saudi Arabia.
“From day one, President Trump‘s America First Trade and Investment Policy has put the American economy, the American worker, and our national security first.”
Pic: AP
That’s the answer when curious voters in faraway America wonder what this is all about.
With opulence and extravagance, this is about a two-way investment and opportunity.
There are defence deals – the largest defence sales agreement in history, at nearly $142bn (£106bn) – tech deals, and energy deals.
Underlying it all is the expectation of diplomatic cooperation, investment to further the geopolitical strategies for both countries on key global challenges.
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Trump says US will end sanctions on Syria
In the convention centre’s gold-clad corridors, outside the plenary hall, there are reminders of the history of this relationship.
There is a ‘gallery of memories’ – the American presidents with the Saudi kings – stretching back to the historic 1945 meeting between Franklin D Roosevelt and King Saud on board the USS Quincy. That laid the foundation for the relationship we now see.
Curiously, the only president missing is Barack Obama. Sources suggested to me that this was a ‘mistake’. A convenient one, maybe.
It’s no secret that the US-Saudi relationship was at its most strained during his presidency. Obama’s absence would give Trump a chuckle.
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From Monday: Why does Saudi Arabia love Trump?
Today, the relationship feels tighter than ever. There is a mutual respect between the president and Saudi Crown Prince Mohammed bin Salman – Trump chose Saudi Arabia as his first foreign trip in his last presidency, and he’s done so again.
But there are differences this time. Both men are more powerful, more self-assured, and of course the region has changed.
Listen to The World with Richard Engel and Yalda Hakim every Wednesday
There are huge challenges like Gaza, but the two men see big opportunities too. A deal with Iran, a new Syria, and Gulf countries that are global players.
It’s money, money, money here in Riyadh. Will that translate to a better, more prosperous and peaceful world? That’s the question.
World
Trump ‘thinking’ of going to Turkey for proposed Zelenskyy-Putin talks – as Russia silent on attending
Donald Trump has said he is “thinking” of going to Turkey on Thursday for potential peace talks between Ukraine and Russia’s leaders.
The US president, who previously claimed he could end the conflict in a day, has pushed for both sides to meet to bring the fighting to an end.
On Sunday, Ukraine’s Volodymyr Zelenskyy called out Vladimir Putin to meet him on Thursday in Istanbul, but the Kremlin leader has yet to respond.
Speaking late on Monday, Mr Trump said: “I was thinking about flying over. I don’t know where I am going be on Thursday.
“I’ve got so many meetings.
“There’s a possibility there I guess, if I think things can happen.”
Mr Trump has headed to the Middle East this week on the first major foreign trip of his second administration, visiting Saudi Arabia, Qatar and the UAE.
Mr Zelenskyy backed the prospect of Mr Trump attending the talks.
He said: “I supported President Trump with the idea of direct talks with Putin. I have openly expressed my readiness to meet.
“And of course, all of us in Ukraine would appreciate it if President Trump could be there with us at this meeting in Turkey.”
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Trump 100: Could Putin, Zelenskyy and Trump really meet?
Russia playing for time?
However, Kremlin spokesperson Dmitry Peskov, speaking on Monday, refused to say who, if anyone, would be travelling to Turkey from the Russian side.
“Overall, we’re determined to seriously look for ways to achieve a long-term peaceful settlement. That is all,” Mr Peskov said.
This came after the “coalition of the willing”, including Sir Keir Starmer, threatened Russia with fresh sanctions if it failed to comply with an unconditional 30-day ceasefire starting on Monday.
Listen to The World with Richard Engel and Yalda Hakim every Wednesday
Russia effectively rejected this proposal, instead calling for direct negotiations in Istanbul with Ukraine, at which Mr Zelenskyy challenged Mr Putin to make the trip himself.
Despite Russia’s claims towards wanting peace, Ukraine’s allies remained deeply sceptical about prospects for talks and whether Mr Putin was serious.
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European Union commission vice president Kaja Kallas said: “We want to see that Russia also wants peace.
“It takes two to want peace, it takes only one to want war, and we see that Russia clearly wants war.”
Meanwhile, Russia continued its nightly attacks on Ukraine.
Overnight into Tuesday, Ukraine said Moscow launched more than 100 drones.
It has been an extraordinary few hours which may well set the tone for a hugely consequential week ahead.
In the time that it took me to fly from London to Saudi Arabia, where President Donald Trump will begin a pivotal Middle East tour this week, a flurry of news has emerged on a range of key global challenges.
• On the Gaza war: The Trump administration has confirmed it’s holding talks with Hamas, which says it will release a hostage amid renewed hopes of a ceasefire.
• On the Ukraine war: President Volodymyr Zelenskyy has said he is prepared to meet Russian President Vladimir Putin in Istanbul – this announcement came minutes after Trump urged Zelenskyy to agree to the meeting.
• On the China-US trade war: The White House says the two countries have agreed to a “trade deal”. China said the talks, in Geneva, were “candid, in-depth and constructive”.
All three of these developments represent dramatic shifts in three separate challenges and hint at the remarkable influence the US president is having globally.
This sets the ground for what could be a truly consequential week for Trump’s presidency and his ability to effect change.
With his unique style, Trump is seeking to align numerous stars as he embarks on his first foreign diplomatic trip of his second presidency.
For days, it’s been unclear how the week ahead would unfold and which global challenge would be dominant.
The Saudi government has been instrumental as a broker in the Ukraine-Russia conflict and Qatar has been a mediator in the Gaza war.
Trump will visit both countries this week.
President Donald Trump on Air Force One earlier this month. File pic: AP
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Putin under pressure?
On Ukraine, Putin held a late-night news conference at the Kremlin on Saturday at which he made the surprise proposal of talks with Zelenskyy in Istanbul this Thursday.
But he rejected European and US calls for an immediate ceasefire.
The move was widely interpreted as a delay tactic.
Trump then issued a social media post urging Zelenskyy to accept the Russian proposal; effectively to call Putin’s bluff.
The American president wrote: “President Putin of Russia doesn’t want to have a Cease Fire Agreement with Ukraine, but rather wants to meet on Thursday, in Turkey, to negotiate a possible end to the BLOODBATH. Ukraine should agree to this, IMMEDIATELY. At least they will be able to determine whether or not a deal is possible, and if it is not, European leaders, and the U.S., will know where everything stands, and can proceed accordingly! I’m starting to doubt that Ukraine will make a deal with Putin, who’s too busy celebrating the Victory of World War ll, which could not have been won (not even close!) without the United States of America. HAVE THE MEETING, NOW!!!”
Within minutes, Zelenskyy responded, agreeing to the talks.
“We await a full and lasting ceasefire, starting from tomorrow, to provide the necessary basis for diplomacy. There is no point in prolonging the killings. And I will be waiting for Putin in Türkiye on Thursday. Personally. I hope that this time the Russians will not look for excuses,” Zelenskyy wrote on X.
The prospect of Putin and Zelenskyy together in Istanbul on Thursday is remarkable.
It raises the possibility that Trump would want to be there too.
President Volodymyr Zelenskyy welcomes other world leaders to Kyiv. Pic: Presidential Office of Ukraine/dpa/AP Images
Israel’s war in Gaza
On Gaza, it’s been announced that US envoy Steve Witkoff will arrive in Israel on Monday to finalise details for the release of Idan Alexander, an Israeli-American hostage being held by Hamas.
The development comes after it was confirmed that Mr Witkoff has been holding discussions with Israel, Qatar and Egypt and, through them, with Hamas.
The talks focused on a possible Gaza hostage deal and larger peace discussions for a ceasefire.
Read more:
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Gaza after around a year and a half of Israeli attacks. Pic: Reuters/Mahmoud Issa
Just days ago, Israel announced a new military plan to move back into Gaza.
When do candid talks become a trade deal?
Meanwhile, officials from the United States and China have been holding talks in Geneva, Switzerland, to resolve their trade war, which was instigated by Trump’s tariffs against China.
Late on Sunday evening, the White House released a statement claiming that a trade deal had been struck.
In a written statement, titled “U.S. Announces China Trade Deal in Geneva”, treasury secretary Scott Bessent said: “I’m happy to report that we made substantial progress between the United States and China in the very important trade talks… We will be giving details tomorrow, but I can tell you that the talks were productive. We had the vice premier, two vice ministers, who were integrally involved, Ambassador Jamieson, and myself. And I spoke to President Trump, as did Ambassador Jamieson, last night, and he is fully informed of what is going on. So, there will be a complete briefing tomorrow morning.”
Beijing Global Times newspaper quoted the Chinese vice premier as saying that the talks were candid, in-depth and constructive.
However, the Chinese fell short of calling it a trade deal.
Listen to The World with Richard Engel and Yalda Hakim every Wednesday
A Qatari gift
In a separate development, US media reports say that Qatar is preparing to gift Trump a Boeing 747 from its royal fleet, which he would use as a replacement for the existing and aging Air Force One plane.
The Qatari government says no deal has been finalised, but the development is already causing controversy because of the optics of accepting gifts of this value.
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