The move comes as Sunak confirmed a 5 to 7 percent hike in salaries for various public sectors, such as teachers, police officers, and junior doctors. However, he made it clear that the government will not resort to borrowing or tax increases, citing concerns about inflation.

During a press conference at Downing Street, Sunak stated, "If we are to prioritize higher pay for public sector workers, the funds must come from alternative sources because I am not inclined to burden the public with higher taxes, nor do I believe it would be responsible or appropriate to increase borrowing, which would exacerbate inflation." He explained that the government plans to achieve this through two measures: increasing charges for migrant visa applicants and raising the Immigration Health Surcharge (IHS), which grants access to the NHS. Sunak anticipates that these adjustments will generate over GBP 1 billion, with significant increases in visa application fees and the IHS.

In addition to these changes, government departments will be asked to reassess their spending priorities to cover the increased wage bill. Sunak clarified that this reallocation does not involve job cuts or service reductions but rather a reorientation towards different areas of focus.

The Conservative party government, led by Rishi Sunak, has faced mounting pressure and disputes concerning public sector pay, resulting in strikes across schools and hospitals. Junior doctors in England recently launched a five-day strike after their demand for a 35 percent pay raise was rejected.

Sunak made it clear that the wage offer presented is final and that further industrial action will not alter the decision. He stated, "There will be no further negotiations on pay. We will not reopen discussions on this year's settlements, and no amount of strikes will change our stance. Instead, the agreement we have reached today provides a fair resolution to end the strikes—an equitable deal for workers and the British taxpayer."