Inflation is the real enemy, because it makes us all poorer. We have a political and economic choice: we either tackle it, or we give in to an inflation pay spiral. The Minister was right to mention that the Royal College of Nursing pay demands are in excess of three times greater than the average private sector payment at the moment. Does my hon. Friend agree that public sector pay demands of almost 20% would embed inflation for years to come and make us all poorer?
