High Court rejects pensions challenge

The Humber Bridge made a gloomy backdrop for George Osborne yesterday (PA)

The Humber Bridge made a gloomy backdrop for George Osborne yesterday, but the Chancellor won a minor victory when changes in the way public sector pension increases are calculated were declared lawful in the High Court.

Unions had accused the Government of unlawfully attempting to cut pension costs. The dispute stems from a decision to use the consumer price index (CPI) to measure price rises influencing pension upgrades.