been made yet. what announcement has been made yet. what is coming in are some of the statements concerning that. let's remind you what we are expecting stop eight pay review bodies have put together a recommendation for next year's pay rise. that recommendation has gone to the chancellor and the prime minister. they have been having meetings and, hopefully, shortly, we will have a statement on their final decision. in terms of the pay rises we are expecting those to be between 6% and 6.5%. that is what we believe has been recommended by the independent review body, the group of bodies. the cost of that, and this could be the crunch decision for the chancellor and the prime minister,

that could cost the government around £5 billion. 45% of the public sector will actually be affected by what is decided today. when we talk about the sectors, let me give you a little idea. we're talking about the nhs, and don't forget thatjunior doctors are currently on strike. this is the first day of a five—day strike. it is potentially the longest as well in their current industrial action. we have the nhs and that includesjunior industrial action. we have the nhs and that includes junior doctors, doctors and dentists, and radiographers as well later this month will be taking strike action. the pay decision, public sector pay decision, will also impact on the police, on teachers, the armed forces and of course, the justice

system. many people will be watching what that rate will be set at, because, remember, the prime minister is also attempting to control inflation. earlier this month he did indicate that he would be unlikely to agree to what, well, he hinted, that he would be unlikely to agree to what was recommended by these pay bodies. one of these concerns was that any additional borrowing could well fuel inflation and make it last longer. remember our inflation rate is higher than the united states and countries in europe as well. it is stubbornly high. once that statement has been made, what we are expecting to happen after that, it is not as easy as those numbers, that rate being adopted by the sectors that are involved. the unions may well also have a say in what happens next.

there is also also, all they have been reports, that government sources are insisting that next year's risers must be tighter, depending on what is agreed today. also there is the suggestion that cuts will have to be made in different departments in order to meet whatever rate has been agreed on today. no new money will be found, so other cuts will have to be made to find the money. that is already within the pool. if he approves the plans, the prime minister approves the plans, each department publishes the independent review body reports and then endorses their recommendations. the implication is, it could stop future industrial action, implication is, it could stop future industrialaction, or implication is, it could stop future industrial action, or extend it. that is what we are waiting for here

on bbc news. we will shortly be hearing the statement that is being made on next year's public sector pay rise. to talk us through the implications of what is decided, whether the cabinet is agreed on what and how the prime minister and the chancellor agree on, i am joined now by charlotte rose, our political correspondent at westminster. hello, charlotte. ., , correspondent at westminster. hello, charlotte-_ what i charlotte. good to be with you. what is currently taking... _ charlotte. good to be with you. what is currently taking. .. 0r— charlotte. good to be with you. what is currently taking... or rather, - is currently taking... or rather, what are the chancellor and the prime minister having to balance? what balance are they having to strike next year's pay rise? this is a big balancing — strike next year's pay rise? this is a big balancing act _ strike next year's pay rise? this is a big balancing act for _ strike next year's pay rise? this is a big balancing act for the - a big balancing act for the government. we are talking about the pay of teachers, junior doctors, police, fire officers, put prison officers and the armed forces. we

are hearing that the public sector review bodies are going to recommend increases of between six and 6.5% for each of those different groups of workers. we also know that government departments have done the maths and they think they can afford to pay a pay rise of around 3.5%. that obviously leaves a pretty big gap to fill of around 2.5 to 3.5%, so where is that money going to come from? the chancellor said that in a speech last night that public sector borrowing could not be used to make these pay rises for public sector workers. that would of course mean that the money would have to be found from within existing department budgets. that could create a bit of a problem, because we have already heard from unions. they say no, this needs to be new money. it cannot be coming from existing budgets like the schools, hospitals, gps, because they are all ready to stretch to find extra savings that would be needed to

create these pay rises. then there is also the issue of whether the unions will accept the pay rise, evenif unions will accept the pay rise, even if six or 6.5% is what recommended, with the unions accept that, because we know that the british medical association, and of course, junior doctors, went on strike from 7am today. they are saying they need to see a 35% increase to make up for historic shortfalls in their pay. haifa increase to make up for historic shortfalls in their pay. how unified are the cabinet _ shortfalls in their pay. how unified are the cabinet on _ shortfalls in their pay. how unified are the cabinet on what _ shortfalls in their pay. how unified are the cabinet on what direction l are the cabinet on what direction this rate should be set at? what are the various sides saying, or putting pressure on mr sunak with? clearly the issue of— pressure on mr sunak with? clearly the issue of public— pressure on mr sunak with? clearly the issue of public sector _ pressure on mr sunak with? clearly the issue of public sector pay - pressure on mr sunak with? clearly the issue of public sector pay is - pressure on mr sunak with? clearly the issue of public sector pay is a i the issue of public sector pay is a difficult one. we have not had break—outs or leaks from people saying that they think it should be set at a particular level or another. clearly this is a big challenge for mr sunak, because what

happens today is going to have a direct impact on the lives of millions of workers. but also on the public who use those services. i mentioned before, we talked about how the unions would react. rishi sunak is trying to balance several of his different pledges that he made at the start of this year. on the one hand, he said he wants to half inflation, and both he and the chancellor, jeremy hunt, have warned that if they were to give a higher increased public sector workers, that could lead to what they have called a wage price spiral, ie wages go called a wage price spiral, ie wages 9° up called a wage price spiral, ie wages go up and inflation goes up and it continues, so next year those workers need and another pay increase. they say they don't want that to happen. on the other hand, if a pay rise isn't given across the public sector, how are we going to retain the doctors that we need. we hear from the nhs all the time that they are losing workers who are going abroad, or who are leaving the sector altogether to work in

different types of jobs. sector altogether to work in different types ofjobs. how sector altogether to work in different types of jobs. how would rishi sunak then be able to make sure that he can cut nhs waiting lists, because without those workers, we are already hearing warnings from nhs england that if these strikes continue, they are not going to be able to do what rishi sunak has promised in that area, to bring waiting lists down. a balancing act from all sides and it's really quite a difficult position for the government to be an. ., . y position for the government to be an. ., . , ., position for the government to be an. ., , .,~ position for the government to be an. ., y ,, position for the government to be an. ., , ,, ~ an. how closely do mr sunak and mr hunt agree. — an. how closely do mr sunak and mr hunt agree. or— an. how closely do mr sunak and mr hunt agree, or work _ an. how closely do mr sunak and mr hunt agree, or work on _ an. how closely do mr sunak and mr hunt agree, or work on the - an. how closely do mr sunak and mr hunt agree, or work on the matter. an. how closely do mr sunak and mr| hunt agree, or work on the matter of balancing the books on something like this? we balancing the books on something like this? ~ ., balancing the books on something like this? ~ . , ., .. like this? we have seen them working toaether like this? we have seen them working together quite — like this? we have seen them working together quite closely. _ like this? we have seen them working together quite closely. we _ like this? we have seen them working together quite closely. we know - like this? we have seen them working together quite closely. we know that l together quite closely. we know that they were meeting this morning to discuss it. we seem to be in a period... we have talked in the past about warfare between number ten and ii, about warfare between number ten and 11, but it about warfare between number ten and ii, but it seems that at the moment they are pretty closely aligned on this issue and they were meeting this issue and they were meeting this morning to sign that. we heard a few minutes ago in the house of commons, john glenn, treasury

minister, said that the government would be accepting the recommendations of the pay review vault bodies in full. we don't yet know exactly what those recommendations are going to be for each of those different sectors. i think it is fair to say that both the prime minister and chancellor are pretty much aligned in their thinking on this. i are pretty much aligned in their thinking on this.— are pretty much aligned in their thinking on this. i understand there are expectations _ thinking on this. i understand there are expectations that _ thinking on this. i understand there are expectations that the _ thinking on this. i understand there are expectations that the police - thinking on this. i understand there are expectations that the police are going to be had at the highest award. what do you understand by this? have you heard otherwise? i don't think we can say anything yet about which sectors will get which awards. we will have to wait for that announcement to come from the prime minister and he will be making an announcement this afternoon. you have touched — an announcement this afternoon. you have touched on the nhs, and the nhs agenda for change. it is going to cost. it agenda for change. it is going to cost. , ., ., . , cost. it is going to cost there is no easy way — cost. it is going to cost there is no easy way around _ cost. it is going to cost there is no easy way around it. - cost. it is going to cost there is no easy way around it. any - cost. it is going to cost there is - no easy way around it. any increase is notjust one worker's pay, it is for potentially hundreds of thousands of workers as we know, in

the nhs. this will then be built into their pay for the years to come. as i was saying before, the difficulty, and the balance the government is having to strike, is, if those workers don't feel like they are getting an acceptable pay rise, and we know that pay is part of the issue. there are also concerns about stress, about burn—out, about being able to fill the vacancies that currently exist in the health service. if they feel that their work is not being valued. we know clinicians of all different types of practice are leaving to join health systems elsewhere in the world, or they are simply leaving health work altogether. if we can't recruit and retain the stuff that we need, clearly the nhs will not be able to deliver a service to patients, let alone meet the target that the prime minister has sets of reducing those waiting lists by the end of the year. it is tough, it is a challenge, and clearly that is something the prime minister and the

chancellor will have been balancing when they held that meeting this morning, and also, in the evidence they have given to the public pay review bodies, because of course, these independent review bodies, they are taking evidence from different people. they will hear both from the government, about spending pressure, but they will also be hearing from those public sector employers who will be telling them, we have a problem in terms of being able to both recruit and retain staff. the pay review bodies themselves are also having to do some of that balancing to reach this recommended figure.— some of that balancing to reach this recommended figure. charlotte rose, we will leave — recommended figure. charlotte rose, we will leave it _ recommended figure. charlotte rose, we will leave it there _ recommended figure. charlotte rose, we will leave it there for _ recommended figure. charlotte rose, we will leave it there for now. - we will leave it there for now. thank you very much. i know you are watching out for that statement for us. we will bring you that as soon as we get it.

speaking earlier he said that, today, i can announce that the government has accepted the headline recommendations of the independent pay review bodies in full. what does this mean smack we are doing this while abiding by sound money, which as the chancellor said, you heard charlotte mentioned that speech at mansion house by the chancellor, we are doing this while abiding by sound money which, as the chancellor said on monday this week, is our number one focus. let's discuss this with joe mitchell, number one focus. let's discuss this withjoe mitchell, a professor of economics at the university of the west of england in bristol. thank you forjoining us, dr mitchell, on bbc news. how do you deliver sound money decisions when it comes to the state of our economy right now? what

should that look like? i state of our economy right now? what should that look like?— should that look like? i think it's not really a _ should that look like? i think it's not really a meaningful- should that look like? i think it's not really a meaningful phrase. l not really a meaningful phrase. sound money is one of those things which politicians like to say as a kind of cover for what they have decided to do, without really having any meaning. for example, since 2010, george osborne introduced the austerity package, and that was about fiscal responsibility and sound money. what they are referring to is the risk that, if the government borrows large amounts and financial investors don't want to lend to the government, then you can get into difficulties, as we saw with liz truss, with the liz truss budget. it is not the primary thing that should be used as justification for what is currently being done. i think it is a bit of a fig leaf for covering up the more difficult and interesting issues and questions we should be discussing. in

interesting issues and questions we should be discussing.— should be discussing. in terms of more difficult, _ should be discussing. in terms of more difficult, just _ should be discussing. in terms of more difficult, just add _ should be discussing. in terms of more difficult, just add a - should be discussing. in terms of more difficult, just add a little i more difficult, just add a little bit more for what the treasury minister has been saying. he says the government will do everything we can to tackle inflation. is that one of those more difficult decisions you are alluding to? that of those more difficult decisions you are alluding to?— you are alluding to? that is the kind of thing. _ you are alluding to? that is the kind of thing. the _ you are alluding to? that is the kind of thing. the first - you are alluding to? that is the kind of thing. the first thing . you are alluding to? that is the kind of thing. the first thing i l kind of thing. the first thing i would say is that the government has very little direct control and inflation coming from abroad. when the global price of gas goes up, or the global price of gas goes up, or the global price of gas goes up, or the global price of food goes up, and that has been the trigger for what we have seen,... idr and that has been the trigger for what we have seen,... dr mitchell, i am “ust what we have seen,... dr mitchell, i am just going _ what we have seen,... dr mitchell, i am just going to _ what we have seen,... dr mitchell, i am just going to jump _ what we have seen,... dr mitchell, i am just going to jump in _ what we have seen,... dr mitchell, i am just going to jump in because . what we have seen,... dr mitchell, i | am just going to jump in because the am just going tojump in because the prime minister is now giving that statement. let's listening. 30 -ublic statement. let's listening. 30 public sector _ statement. let's listening. 30 public sector workers, _ statement. let's listening. 30 public sector workers, who - statement. let's listening. 30 public sector workers, who do - statement. let's listening. 30 public sector workers, who do so | public sector workers, who do so much _ public sector workers, who do so much in — public sector workers, who do so much in the _ public sector workers, who do so much in the service of our country. it much in the service of our country. it also _ much in the service of our country. it also fair— much in the service of our country. it also fair to— much in the service of our country. it also fair to taxpayers, who ultimately fund our public services. and the _ ultimately fund our public services. and the best way we have found of making _ and the best way we have found of making fair— and the best way we have found of making fair decisions about public sector— making fair decisions about public sector pay, the independent pay revlew— sector pay, the independent pay review body. they were called for by

the unions _ review body. they were called for by the unions themselves, and for over four decades, they have been the independent arbiters of what is fair and responsible. those bodies have considered — and responsible. those bodies have considered a range of evidence about where _ considered a range of evidence about where to— considered a range of evidence about where to set this years pay. their recommendations to government of the public— recommendations to government of the public sector pay rises to go up by a significant amount. clearly this will cost — a significant amount. clearly this will cost all of you, as taxpayers, more _ will cost all of you, as taxpayers, more than — will cost all of you, as taxpayers, more than we had budgeted for. that is why— more than we had budgeted for. that is why the _ more than we had budgeted for. that is why the decision has been difficult, _ is why the decision has been difficult, and why it has taken time to decide _ difficult, and why it has taken time to decide the right course of action _ to decide the right course of action i_ to decide the right course of action. i can confirm today that we are accepting the headline recommendations of the pay review body is _ recommendations of the pay review body is in _ recommendations of the pay review body is in full. but we will not fund — body is in full. but we will not fund them by borrowing more or increasing — fund them by borrowing more or increasing your taxes. it would not be right _ increasing your taxes. it would not be right to — increasing your taxes. it would not be right to increase taxes on everyone _ be right to increase taxes on everyone to pay some people more, particularly _ everyone to pay some people more, particularly when household budgets are so _ particularly when household budgets are so tight. neither would it be right— are so tight. neither would it be right to — are so tight. neither would it be right to pay for them by higher borrowing, because higher borrowing

simply— borrowing, because higher borrowing simply makes inflation worse. instead, — simply makes inflation worse. instead, because we only have a fixed _ instead, because we only have a fixed pot — instead, because we only have a fixed pot of money to spend from, that means — fixed pot of money to spend from, that means government departments have had _ that means government departments have had to find savings and efficiencies elsewhere. this is in order— efficiencies elsewhere. this is in order to — efficiencies elsewhere. this is in order to prioritise paying public sector— order to prioritise paying public sector workers more. there is a clear— sector workers more. there is a clear message here. there are always choices, _ clear message here. there are always choices, budgets are not infinite. when _ choices, budgets are not infinite. when some ask for higher pay, that will always— when some ask for higher pay, that will always create pressures elsewhere, costs which must ultimately be borne by the taxpayer or by spending less on other priorities _ or by spending less on other priorities. that is our decision, and _ priorities. that is our decision, and having _ priorities. that is our decision, and having on at the independent pay review— and having on at the independent pay review process, i urge all union leaders — review process, i urge all union leaders to— review process, i urge all union leaders to accept these pay offers and call _ leaders to accept these pay offers and call off their strikes. already earlier— and call off their strikes. already earlier this year, the nhs staff council. — earlier this year, the nhs staff council, representing over half a dozen _ council, representing over half a dozen unions, and overi million nhs workers. _ dozen unions, and overi million nhs workers, made a significant decision _ workers, made a significant decision, and voted to accept our

pay offer— decision, and voted to accept our pay offer and suspend strikes. i am grateful— pay offer and suspend strikes. i am grateful to— pay offer and suspend strikes. i am grateful to them and their members. today. _ grateful to them and their members. today. in— grateful to them and their members. today, in response to the news of our decision, i am today, in response to the news of our decision, lam pleased today, in response to the news of our decision, i am pleased to say we have had _ our decision, i am pleased to say we have had another major breakthrough. all teaching unions have just announced that they are suspending all planned strikes immediately. teachers — all planned strikes immediately. teachers will return to the classroom. disruption to our children's— classroom. disruption to our children's education will end, and the unions — children's education will end, and the unions have themselves confirmed that this _ the unions have themselves confirmed that this pay offer is properly funded _ that this pay offer is properly funded. they are recommending to their members an end to the entire dispute _ their members an end to the entire dispute it— their members an end to the entire dispute. it is now clear, momentum across— dispute. it is now clear, momentum across our— dispute. it is now clear, momentum across our public services is shifting~ _ across our public services is shifting. the vast majority, who 'ust shifting. the vast majority, who just want— shifting. the vast majority, who just want to get on with their life's— just want to get on with their life's calling of serving others, are now — life's calling of serving others, are now returning to work. in that spirit. _ are now returning to work. in that spirit. i_ are now returning to work. in that spirit. iwant— are now returning to work. in that spirit, i want to address those yet to do— spirit, i want to address those yet to do so — spirit, i want to address those yet to do so. now that we have honoured the independent pay recommendations,

i the independent pay recommendations, l implore _ the independent pay recommendations, i implore you, do the right thing and know— i implore you, do the right thing and know when to say yes. in particular. _ and know when to say yes. in particular, for doctors and consultants, i would say this. we have _ consultants, i would say this. we have a _ consultants, i would say this. we have a national mission for all of us to— have a national mission for all of us to make — have a national mission for all of us to make the nhs strong again. the government— us to make the nhs strong again. the government has not only made today's decision— government has not only made today's decision on— government has not only made today's decision on pay, we have backed the nhs with— decision on pay, we have backed the nhs with record funding, delivered the first— nhs with record funding, delivered the first ever fully funded long—term workforce plan, and met the bma's— long—term workforce plan, and met the bma's number one ask of government with a pensions tax cut worth— government with a pensions tax cut worth £1_ government with a pensions tax cut worth £1 billion. we should all ask ourselves, — worth £1 billion. we should all ask ourselves, whether union leaders or political— ourselves, whether union leaders or political leaders, how can it be right— political leaders, how can it be right to — political leaders, how can it be right to continue disruptive industrial action? right to continue disruptive industrialaction? not right to continue disruptive industrial action? not least because these _ industrial action? not least because these strikes lead to tens of thousands of appointments being cancelled every single day. and waiting — cancelled every single day. and waiting lists going up, not down.

today's— waiting lists going up, not down. today's offer is final. there will be today's offer is final. there will he no _ today's offer is final. there will he no more _ today's offer is final. there will be no more talks on pay. we will not negotiate _ be no more talks on pay. we will not negotiate again on this year's settlements, and no amount of strikes — settlements, and no amount of strikes will change our decision. instead — strikes will change our decision. instead the settlement we reach today— instead the settlement we reach today gives us a fair way to end the strikes _ today gives us a fair way to end the strikes a _ today gives us a fair way to end the strikes. a fair deal for workers, and a _ strikes. a fair deal for workers, and a fair — strikes. a fair deal for workers, and a fair dealfor strikes. a fair deal for workers, and a fair deal for the british taxpaven _ and a fair deal for the british taxpayer. thank you. i will take some _ taxpayer. thank you. i will take some questions from the media. i will start— some questions from the media. i will start with the bbc.— will start with the bbc. chris mason, will start with the bbc. chris mason. bbc _ will start with the bbc. chris mason, bbc news. - will start with the bbc. chris mason, bbc news. will- will start with the bbc. chris mason, bbc news. will you | mason, bbc news. will you acknowledge explicitly that a consequence of your decision will mean cuts in the budgets of some key public services, and explicitly on schools, given what you have just said about schools, where is the money coming from to pay for that? thanks, chris. as i said in my speech, — thanks, chris. as i said in my speech, this is a significant pay award — speech, this is a significant pay award it— speech, this is a significant pay award it is— speech, this is a significant pay award. it is one of the most significant we have had in decades.

it is significant we have had in decades. it is costing — significant we have had in decades. it is costing billions of pounds more — it is costing billions of pounds more than the government had budgeted for, and that has consequences. if we are going to prioritise — consequences. if we are going to prioritise paying put workers more, it has— prioritise paying put workers more, it has to _ prioritise paying put workers more, it has to come from somewhere else. it it has to come from somewhere else. it wouldn't _ it has to come from somewhere else. it wouldn't be responsible to borrow more _ it wouldn't be responsible to borrow more because it would make inflation worse _ more because it would make inflation worse we _ more because it would make inflation worse. we have done two things to find this— worse. we have done two things to find this money. the first is, we are going — find this money. the first is, we are going to increase the charges that we _ are going to increase the charges that we have for migrants who are coming _ that we have for migrants who are coming to— that we have for migrants who are coming to this country when they apply— coming to this country when they apply for— coming to this country when they apply for visas, and indeed, something called the immigration surcharge, which is the levy they pay surcharge, which is the levy they pav to— surcharge, which is the levy they pay to access the nhs. all of those fees are _ pay to access the nhs. all of those fees are going to go up and that will raise — fees are going to go up and that will raise over £1 million. across the board — will raise over £1 million. across the board, visa application fees will go — the board, visa application fees will go up — the board, visa application fees will go up significantly and similarly, for the immigration health— similarly, for the immigration health surcharge, five migrants who are coming — health surcharge, five migrants who are coming to this country legally, the fee _ are coming to this country legally, the fee they have to pay to contribute nhs care, neither of these _ contribute nhs care, neither of these fees have been increased

recently — these fees have been increased recently and we think it is the appropriate that those fees, both applying — appropriate that those fees, both applying for visas is in accessing the nhs — applying for visas is in accessing the nhs will go up, that will racic never— the nhs will go up, that will racic never currently to help us pay for these _ never currently to help us pay for these pay— never currently to help us pay for these pay awards. we are also reprioritising. we are asking government departments to re—prioritise, to support public sector— re—prioritise, to support public sector workers, and that will mean in other— sector workers, and that will mean in other areas it will be... it is not _ in other areas it will be... it is not about— in other areas it will be... it is not about cuts, it is about focusing on public _ not about cuts, it is about focusing on public sector pay rather than other— on public sector pay rather than other things. on public sector pay rather than otherthings. i on public sector pay rather than other things. i am on public sector pay rather than otherthings. lam really on public sector pay rather than other things. i am really pleased that the — other things. i am really pleased that the teaching unions, specifically, have said that this pay offer— specifically, have said that this pay offer is properly funded. we have _ pay offer is properly funded. we have put— pay offer is properly funded. we have put more money into the teaching — have put more money into the teaching budget, £2 billion a year, and there — teaching budget, £2 billion a year, and there will be more money going into the _ and there will be more money going into the schools' budget to help schools — into the schools' budget to help schools pay for these new pay awards — schools pay for these new pay awards. they will not have to make cuts and _ awards. they will not have to make cuts and that was something that was rightly— cuts and that was something that was rightly important to the unions, and we have _ rightly important to the unions, and we have worked with them to ensure that the _ we have worked with them to ensure that the funding is therefore schools _ that the funding is therefore schools so that no cuts will need to be made _ schools so that no cuts will need to be made and the payoff is properly funded _ be made and the payoff is properly funded and that is the basis on

which — funded and that is the basis on which the _ funded and that is the basis on which the unions have called off the action _ which the unions have called off the action and — which the unions have called off the action and i— which the unions have called off the action, and i am grateful to them and their— action, and i am grateful to them and their members for that. nhs leaders say _ and their members for that. nhs leaders say there _ and their members for that. nhs leaders say there is _ and their members for that. iihs leaders say there is no chance of them being able to reduce backlogs on treatments in the way that you want if they have to make savings. are they going to have to make savings to fund part of this pay rise? separately, it has been said that the uk's government debt is much more vulnerable to rising inflation than any other g7 leading country. part of the reason is because of decisions you chuck as chancellor on issuing index linked bills. do you regret those decisions?—

bills. do you regret those decisions? , , ., decisions? on your second question, somethin: decisions? on your second question, something we _ decisions? on your second question, something we discussed _ decisions? on your second question, something we discussed a _ decisions? on your second question, something we discussed a lot - decisions? on your second question, something we discussed a lot when i j something we discussed a lot when i was chancellor. we have one of the longest _ was chancellor. we have one of the longest durations of government borrowing out of any g7 country, and have consistently reduce the amount of inflation _ have consistently reduce the amount of inflation over the years. it is something _ of inflation over the years. it is something i have pointed out as a risk to— something i have pointed out as a risk to the — something i have pointed out as a risk to the public finances when i was chancellor and that is why i talk to— was chancellor and that is why i talk to them about the risk to finances _ talk to them about the risk to finances from rising inflation and interest— finances from rising inflation and interest rates. that is my priority, to halve _ interest rates. that is my priority, to halve inflation, because that is not only— to halve inflation, because that is not only good for budgets, it will over time — not only good for budgets, it will over time bring down interest rates, which _ over time bring down interest rates, which is _ over time bring down interest rates, which is also — over time bring down interest rates, which is also good for government borrowing — which is also good for government borrowing and the strength of the public _ borrowing and the strength of the public finances. you are right to highlight— public finances. you are right to highlight the risks of inflation and interest— highlight the risks of inflation and interest rates on the public finances _ interest rates on the public finances. i highlighted the same risk as— finances. i highlighted the same risk as chancellor and that is why an important part of today's decision— an important part of today's decision is, yes we are accepting the recommendations of the pay review— the recommendations of the pay review bodies, but we are doing so without— review bodies, but we are doing so without borrowing more, because i don't _ without borrowing more, because i don't think— without borrowing more, because i don't think that would be responsible for all the reasons you outlined — responsible for all the reasons you outlined, and without taxing people

more _ outlined, and without taxing people more. with regard to the backlogs in the nhs, _ more. with regard to the backlogs in the nhs, i_ more. with regard to the backlogs in the nhs, iagree. industrialaction, strikes. _ the nhs, iagree. industrialaction, strikes, make it far harder for us to cut _ strikes, make it far harder for us to cut the — strikes, make it far harder for us to cut the backlogs. we have already had half— to cut the backlogs. we have already had half a _ to cut the backlogs. we have already had half a million people's outpatient appointments cancelled and disrupted by strike action we have _ and disrupted by strike action we have seen— and disrupted by strike action we have seen today. it is an enormous number— have seen today. it is an enormous number and — have seen today. it is an enormous numberand, in spite have seen today. it is an enormous number and, in spite of that, because _ number and, in spite of that, because of all the other things we are doing — because of all the other things we are doing the funding we are putting into the _ are doing the funding we are putting into the nhs, thanks to a lot of people's— into the nhs, thanks to a lot of people's hard work and creativity, we are _ people's hard work and creativity, we are making progress. last year we eliminated _ we are making progress. last year we eliminated the people waiting two years— eliminated the people waiting two years for— eliminated the people waiting two years for treatment. this year we are practically eliminating the people — are practically eliminating the people waiting one and a half years, and that— people waiting one and a half years, and that is— people waiting one and a half years, and that is down to just a few thousand _ and that is down to just a few thousand now, and we have plans in place _ thousand now, and we have plans in place to— thousand now, and we have plans in place to continue working on backlogs. without the industrial action— backlogs. without the industrial action ending, of course that will be more — action ending, of course that will be more difficult. that is why i would — be more difficult. that is why i would urge consultants and junior doctors _ would urge consultants and junior doctors to— would urge consultants and junior doctors to accept the recommendations of the independent pay review— recommendations of the independent pay review body. this is not even

the government. this is the independent pay review body who has made _ independent pay review body who has made a _ independent pay review body who has made a recommendation on their pay, which _ made a recommendation on their pay, which we _ made a recommendation on their pay, which we have accepted in full, on top of— which we have accepted in full, on top of all— which we have accepted in full, on top of all the other things we have done _ top of all the other things we have done for— top of all the other things we have done for the nhs, top of all the other things we have done forthe nhs, like top of all the other things we have done for the nhs, like the long—term workforce _ done for the nhs, like the long—term workforce plan, something that has been called for four decades. we have _ been called for four decades. we have delivered. i would urge them to accept _ have delivered. i would urge them to accept this— have delivered. i would urge them to accept this offer from the independent bodies, and that way we can work— independent bodies, and that way we can work collectively to bring the backlogs — can work collectively to bring the backlogs down. i know that is what the vast _ backlogs down. i know that is what the vast majority want to see happen _ the vast majority want to see happen, that is what i want to see happen _ happen, that is what i want to see happen, and i'm prepared to work with them — happen, and i'm prepared to work with them to do that. one of the ways— with them to do that. one of the ways we — with them to do that. one of the ways we are raising money to pay for this is— ways we are raising money to pay for this is through the immigration health— this is through the immigration health surcharge. that is money that .oes health surcharge. that is money that goes to— health surcharge. that is money that goes to the _ health surcharge. that is money that goes to the nhs. when people emigrate they have to pay something or the _ emigrate they have to pay something or the immigration health surcharge to contribute to the cost of the nhs, _ to contribute to the cost of the nhs, and _ to contribute to the cost of the nhs, and the costs of that will go up nhs, and the costs of that will go up as— nhs, and the costs of that will go up as part — nhs, and the costs of that will go up as part of this announcement, in order— up as part of this announcement, in order to _ up as part of this announcement, in order to raise — up as part of this announcement, in order to raise more money for the nhs, _ order to raise more money for the nhs, to— order to raise more money for the nhs, to help pay for some of these costs _ nhs, to help pay for some of these costs can— nhs, to help pay for some of these costs can i— nhs, to help pay for some of these costs. can i go next to talk radio.

are you _ costs. can i go next to talk radio. are you slightly hiding behind the independent pay review body is here? thejunior independent pay review body is here? the junior doctors independent pay review body is here? thejunior doctors are independent pay review body is here? the junior doctors are getting less than one fifth of a percentage point rise. how do you honestly expect them to believe that this is a fair offer, when they are asking for so much more, and went strikes be inevitable now in the autumn? this is a process- _ inevitable now in the autumn? this is a process. the _ inevitable now in the autumn? this is a process. the independent pay review— is a process. the independent pay review bodies they are a process that has— review bodies they are a process that has existed for very long it is an institution that the union stems of called _ an institution that the union stems of called for, and for a long time it has— of called for, and for a long time it has been— of called for, and for a long time it has been accepted as the best and fair way— it has been accepted as the best and fair way that we have in this country— fair way that we have in this country to— fair way that we have in this country to find resolution on public sector— country to find resolution on public sector pay — country to find resolution on public sector pay. there are representatives of unions, government, economists, on the boards— government, economists, on the boards of— government, economists, on the boards of these bodies, they make independent recommendations to the government, and they do so in a range _ government, and they do so in a range of— government, and they do so in a range of sectors. that is what we have _ range of sectors. that is what we have accepted. that is what we have accepted _ have accepted. that is what we have accepted and we have accepted their headline _ accepted and we have accepted their headline recommendations in full. forjunior— headline recommendations in full. forjunior doctors in particular, a typical— forjunior doctors in particular, a

typicaljunior dr on pay .3, is going — typicaljunior dr on pay .3, is going to _ typicaljunior dr on pay .3, is going to receive a significant pay increase. — going to receive a significant pay increase, around 9%. this is as a result— increase, around 9%. this is as a result of— increase, around 9%. this is as a result of us— increase, around 9%. this is as a result of us accepting the recommendation. most would think that is— recommendation. most would think that is significant pay increase for a junior— that is significant pay increase for a junior dr, — that is significant pay increase for a junior dr, that is what is being delivered — a junior dr, that is what is being delivered as a result of our decision— delivered as a result of our decision today. that comes along with all— decision today. that comes along with all the other we have done for the nhs, _ with all the other we have done for the nhs, record funding, a long—term workforce _ the nhs, record funding, a long—term workforce plan so there are more doctors _ workforce plan so there are more doctors and nurses and more of every type of— doctors and nurses and more of every type of health care worker in the nhs, _ type of health care worker in the nhs, for— type of health care worker in the nhs, for the first time, expansion of training — nhs, for the first time, expansion of training places that everyone has called _ of training places that everyone has called for. — of training places that everyone has called for, and, as those junior doctors — called for, and, as those junior doctors progressed to become consultants and are paid even more, they will— consultants and are paid even more, they will benefit from the significant tax cut that the chancellor announced in the spring budget, _ chancellor announced in the spring budget, which was the bma's number one ask— budget, which was the bma's number one ask of— budget, which was the bma's number one ask of government. we have delivered — one ask of government. we have delivered the pension tax cut and those _ delivered the pension tax cut and those junior doctors will benefit. taken _ those junior doctors will benefit. taken together, i think we have done the fair— taken together, i think we have done the fair thing taken together, i think we have done the fairthing and taken together, i think we have done the fair thing and i would urge the junior— the fair thing and i would urge the junior doctors and consultants to

see that, — junior doctors and consultants to see that, to see the commitment we have to _ see that, to see the commitment we have to the _ see that, to see the commitment we have to the nhs, to recognise the economic— have to the nhs, to recognise the economic context we are in, and accept _ economic context we are in, and accept the — economic context we are in, and accept the recommendations of the independent pay review body, something that has established its independence of government. i would ur-e independence of government. i would urge them _ independence of government. i would urge them to do the same too. can i io urge them to do the same too. can i go to— urge them to do the same too. can i go to the _ urge them to do the same too. can i go to the daily mail. that urge them to do the same too. can i go to the daily mail.— go to the daily mail. that is the prime minister _ go to the daily mail. that is the prime ministerjust _ go to the daily mail. that is the prime ministerjust taking - go to the daily mail. that is the - prime ministerjust taking questions following the announcement that they are accepting the recommendations of the independent pay review bodies, concerning public sector pay. at the moment he is just taking concerning public sector pay. at the moment he isjust taking questions from the floor about a significant from the floor about a significant decision, a significant amount, is decision, a significant amount, is how he described it, fair decisions, how he described it, fair decisions, and responsible ones as well. and responsible ones as well. accepting in full, but he says it how he described it, fair decisions, and respo in ble ones as well. how he described it, fair decisions, and respo in full, nes as well. how he described it, fair decisions, and respo in full, but as well. how he described it, fair decisions, and respo in full, but he well. how he described it, fair decisions, and respo in full, but he says it won't be funded by borrowing, which accepting in full, but he says it won't be funded by borrowing, which will make inflation worse, or an will make inflation worse, or an increase in taxes. we will have more

on that here on bbc news. in the will make, inflationworsezoram that here on bbc news. in the meantime, to bring you some breaking on that here on bbc news. in the meantime, to bring you some news, the bbc understands that the on that here on bbc news. in the meantime, to bring you sor that the former radio one dj, tim westwood, news, the bbc understands that the former radio one dj, tim westwood, has been questioned under police has �* police has been questioned under police caution, in a statement the police caution, in a statement the police confirmed they are investigating confirmed they are investigating five accusations of non—recent five accusations of non—recent sexual offences, which are alleged which are alleged to have happened between 1982 and sexual offences, which are alleged to have happened between 2016. this comes following an sexual offences, which are alleged to hat this opened between sexual offences, which are alleged to hat this comes between sexual offences, which are alleged to hat this comes following an 2016. this comes following an investigation by bbc news and the investigation by bbc news and guardian, uncovering multiple 2016. this comes following an investigat uncovering lews and 2016. this comes following an investigat uncovering multiple guardian, uncovering multiple allegations. more on this on bbc allegations. more on this on bbc news. news. floor about a significant