S o, the government has gone with option 1, sub-section c: accept the recommendations of the pay review bodies – with mostly no new money. This neatly avoids higher borrowing, inflation or taxation (more on that later), but means cash must be found from existing department budgets not exactly flush with the stuff to begin with. The pay increases are as follows: Police: 7 per cent NHS: 6 per cent Junior doctors: 6 per cent Prison officers: 7 per cent Armed Forces: 5 per cent Teachers: 6.5 per cent The response has been mixed. Teaching unions have said they will...