Labour is facing a tough choice between sticking to its election promises on taxes and spending, or giving public sector workers bigger pay raises.
The chancellor, Rachel Reeves, has hinted that the government might give public sector workers above-inflation pay rises, which would cost billions of pounds.
Economists are warning that these raises would be difficult to afford without raising taxes or borrowing more money.
The government's spending plans, which promised no tax increases, are likely to be difficult to follow if these pay raises are approved.
