The source said the pay cap was brought in to «deal with the mess we inherited from Labour» and acknowledged the «hard work and sacrifice»
made by public sector workers, saying jobs had been protected and the deficit reduced by three quarters.
Britain's trade unions are gathering in Manchester today for the annual TUC congress with the threat of the biggest mass strikes
by public sector workers since the poll tax riots of 1990.
Under the reforms, outside organisations could bid for work including» mutual» companies
formed by public sector workers and based on the John Lewis Partnership, the department store chain partly owned by its staff.
Unions have warned that strikes
by public sector workers in the row over pensions will continue following a day of walkouts and protests.