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Philip Hammond, the Chancellor of the Exchequer, urged colleagues to make the case for ‘sound money’; he said, ‘We must hold our nerve,’ as he came under pressure to end the public-sector pay cap of a 1 per cent rise a year. Boris Johnson, the Foreign Secretary, thought that pay rises could be awarded in ‘a responsible way’; Michael Gove, the Environment Secretary, did not think that taxes would need to increase to accommodate pay rises.
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