After news that the Bank of England expects inflation to hit 4 per cent by Christmas, Director General of the British Chambers of Commerce, David Frost, is urging the Government to resist extra pay demands.

David Frost said:

"At a time of serious economic difficulties, business is concerned about the growing strike threat in the public sector where a number of union leaders are seeking to re-negotiate recently agreed pay deals.

“The Government must resist these demands for extra pay. Public finances are very weak and neither business nor its employees can afford additional taxes."