SHOCK U-TURN? Theresa May ‘to scrap public sector pay cap’ amid Tory rebellion

Up to 20 angry Conservative MPs allegedly confronted the Prime Minister over the cap, which currently sees the wages of five million public sector workers frozen until 2019.

The group, who met with Mrs May’s chief of staff Gavin Barwell, reportedly featured several top party figures including ex-party chairman Grant Shapps, policy board chief George Freeman and former justice minister Andrew Selous.

Following the confrontation Mrs May and Chancellor Phillip Hammond have agreed to allow pay rises above one per cent for state wages, according to the Sun.

An insider claimed under the scheme, ministers will discretly tell pay review bodies they can recommend a rise in state wages.

However the plan will reportedly not be introduced immediately, as the Prime Minister does not want to appear to be bowing to pressure from “Comrade Corbyn”.

A source told the Sun: “Gavin told us that the PM completely accepts there needs to be some big changes of style and tone, but she can’t be seen to be pushed around by Comrade Corbyn.

“Instead, she and Hammond will invite the pay review bodies to come back with bigger settlements in due course.

“We all came away very happy with what we heard.”

Yesterday, Mr Hammond hinted the pay cap could be reviewed, telling the Commons: “Our pay policy has always been designed to strike the right balance of being fair to our public servants and fair to those who pay for them.

“That approach has not changed, and we continually assess that balance.”

The Chancellor is reportedly set to announce the U-turn in the Autumn budget.

It is believed up to 40 Conservative MPs have now spoken out against the controversial pay cap following the Commons vote to keep any mention of the policy out of the Queens speech.

Plymouth MP Johnny Mercer said: “I will persistently be a loud voice to remove the public sector pay cap for frontline workers.”

It follows a humiliating defeat to Labour yesterday after the Commons passed Theresa May’s Queen’s Speech following the rejection of amendments put forward by Jeremy Corbyn.