'Country cannot afford 2% pay rise' says Osborne

The Chancellor has announced plans to cap public sector pay rises to 1% when a current wage freeze ends.

In his Autumn Statement, George Osborne told MPs that further restraint on public sector pay was needed from 2013/15.

He said the Government could not afford a 2% rise assumed by some departments.

He also called on the unions to call off Wednesday's strikes.