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Rob Whiteman, Chief Executive of Chartered Institute of Public Finance and Accountancy, said:
"The government must deliver sustainable public services and this is achieved in part by remunerating staff appropriately. The question of easing the public sector pay cap therefore comes down to an act of balancing affordability with workforce stability.
"Government must manage costs, but driving away workers due to pay restrictions could result in a far heftier bill from the higher costs of short term contracts and agency fees, not to mention poorer service quality and continuity."
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