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The National (Scotland)
The National (Scotland)
National
James Walker

‘Austerity mark two is not the answer’: Trade unions hit out at Keir Starmer speech

Welcome to our On the Picket Line newsletter, where we take a deeper look at the biggest trade union stories of the week. You can subscribe here to receive it every week straight in your inbox!


TRADE unions have hit out at Keir Starmer’s speech in which he warned that the UK Government’s forthcoming Budget will be “painful”.

Speaking in the Downing Street rose garden on Tuesday, the Prime Minister claimed his Labour Government has inherited a “societal black hole” made worse by recent rioting, and said his decisions to release some prisoners early and means-test the pensioners’ winter fuel allowance are “tough actions” needed to fix the country’s foundations.

But trade unions, including Unite, have hit out at Starmer’s “bleak vision of Britain” and that “austerity MK2 is not the answer”.

Unite general secretary Sharon Graham said it is “time to see the change that Labour promised”.

Keir Starmer walking out for his speech (Image: Stefan Rousseau)

“The chaos of the previous government is clear but we can make different choices to fix our nations. Britain can't wait for growth. Our industries can't wait for investment,” she said.

“Britain is in crisis, yes. But to say there is no money to rebuild our industry and infrastructure, or to restore our public services, is simply not true. The top 50 families have more wealth than half our population. The profit margins of the average British firm have rocketed by 30% since before the pandemic. If we taxed 1% on the wealthiest 1%, the so-called black hole would be gone.

“The money is there. It's time for a wealth tax on the super rich and a tax on excess profits. We don't need more excuses about fiscal responsibility or talk of wealth creation.

“We should not pit pensioners against workers, that is not a choice that should be on the table.

“We now need Labour to have the courage to make the right choices. To be Labour and fight for change for workers and our communities.”

Simon Francis from the End Fuel Poverty Coalition – a group of anti-poverty campaigners, charities, local authorities and trade unions – particularly condemned the plans to change winter fuel payments, which will see 10 million pensions lost the payments across the UK.

"The winter fuel payment axe is not about rot in the system, it is about basic fairness for older people facing soaring energy bills,” he said.

"In real terms, the changes this winter mean that some older people will face the highest energy bills on record."

Francis added that the move has the "potential to create a public health emergency" that will put "more pressure" on the NHS.

Roz Foyer (Image: free)

STUC general secretary Roz Foyer (above), meanwhile, told The National that the speech “raises more questions than answers”.

“It’s true that the nation’s finances are dire as a result of 14 years of Tory austerity, but let’s be clear – there is no shortage of money in the UK – it is just concentrated in very few hands.” she said.

“We’re encouraged that the Prime Minister made clear that those with the broadest shoulders will carry the greatest load. Whilst we wait with bated breath on the Chancellor’s statement, the STUC has been clear: spending cuts and a return to austerity is unconscionable. Our public services need investment. It can come from the Labour Government taxing wealth and targeting those who have the most in our society.”

She added: “It’s clear that the Labour Government has the power to raise revenue and bring prosperity and hope back to our communities. It’s time they got to work.”

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