Chancellor did not contest claim when asked whether his department blocked a pay rise of around 10% for rail workers

Jeremy Hunt, the chancellor, has refused to quash claims that the Treasury vetoed a pay offer that may have led to a resolution of the rail strike.

Last month the Daily Telegraph claimed that the Department for Transport wanted to offer rail workers a rise worth between 8% and 9% over two year, but that it was prevented from doing so by the Treasury.

There is unanimity across the government in that it wants high inflation to be temporary, and I think there is understanding that that is essential for the very people who are feeling most angry about their situation.

We have to be really careful not to agree to pay demands that have the opposite of the intended effect because they lock in high inflation.

So if we make the wrong choices now, we won’t have that 3.7% of inflation in January or February of 2024 and this will change from being a one-off problem, to being a permanent problem, which will be the worst possible thing for people working in public services. That is why it’s generally a very difficult issue.

I would urge everyone to boycott Netflix and make sure that we actually focus on the things that matter.