Hello and welcome to Coffee House Shots, The Spectators Daily Politics Podcast.

I'm Isabel Hardman and this is the Sunday roundup.

The new Chancellor of the Exchequer Rachel Reeves gave an interview with Laura Coonsburg this morning

in which she emphasized the mess she

says the Conservatives have left behind and restated that Labour would not spend outside of its fiscal

rules.

Coonsburg asked Reeves whether she would be prepared to ignore the recommendations of the independent

pay-review bodies which have called for a public sector pay rise of 5.5%.

We understand that the pay- bodies have recommended a rise of 5.5%.

Now that is more than people in this building and number 11 were expecting. It's more than the former government had budgeted for it's more

than you had budgeted for.

Would you as a chancellor who's just said you want to be honest and people have to be prepared

for tough decisions?

Would you be prepared to ignore the recommendations of the independent

bodies and risk a period of strikes with the unions by not giving them the pay rises they seek.

I really value public service workers in our schools, in our hospitals, in our police as well.

At the moment we are looking at those pay review body recommendations doing

the analysis and we will work with public sector workers on that and later this

month that we will make announcements around public sector pay

when we do that full analysis of the public finances and public spending.

But we also know that there is a cost to not settling, a cost of further industrial action,

a cost in terms of the challenge that we face in recruiting and retaining doctors and nurses

...