Ten Things You Need to Know Today: Tuesday 4 Jul 2017

1. Hammond: 'We must hold nerve on austerity'

Chancellor Philip Hammond has said his policy on public sector pay has not changed and the government must "hold its nerve" on austerity, despite cabinet ministers suggesting the public sector pay increase cap could be lifted. A government report yesterday found that teachers' pay had fallen by £3 an hour in real terms in ten years.

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