Public sector pay demands set to hit Budget 2018

Growing concern in government that public sector pay demands will eliminate room for USC cuts

The government is fearful that demands from public sector workers for pay rises will rule out any tax cuts in the next budget.

There is provisionally €1.2 billion of extra funding available for Budget 2018, but this is actually closer to €550 million due to the knock-on effect of paying for tax cuts and spending increases in Budget 2017.

There is growing concern in government that the demands for more public sector pay ...