The UK administration has decided to stop wage increases among public sector workers except for civil servants working in the health sector and those on low incomes based on a statement issued by UK finance minister Rishi Sunak on Wednesday. The move is an attempt to prioritize only the necessary expenses.
According to Sunak, UK administration prefers targeted spending to those who really need it. Sunak admits that this move is a difficult decision as the government has to control their spending. This time, the salary increase is focused on civil servants in the health sector and those on low incomes.
Some analysts believe that this move will put pressure on the people and affect consumer confidence.
In addition, the UK administration also reduced external financial assistance from 0.7% of GDP to 0.5%. This announcement has the support of those who think that the government should spend less to face the impact of Covid-19.
However, this announcement has received great challenges from many parties. The GBP currently only managed to strengthen 0.03% against the US dollar as of 11.20 p.m.
