From missed opportunities to 'Tory hot air’, trade unions weigh in on the Spring Budget announcements

Responding to Jeremy Hunt’s spring budget statement today, union leaders have shared their thoughts on what it will mean for workers across the UK, with warnings of deepening crises in their respective industries. 

The Chancellor was condemned for failing to announce proper investment in public services, with trade union leaders accusing him of using “deeply cynical” pre-election “gimmicks”.

Union leaders had already warned the Chancellor of the need to provide extra cash for public services, as Jeremy Hunt has been blasted for falling well short of delivering for working people. 

Tax cut “gimmicks”

Commenting on Hunt’s announcement to cut national insurance by 2 per cent, Paul Nowak of the TUC said the measure was a “political con-trick – giving with one hand while taking with another”. 

Nowak said that without a long-term plan to raise wages and restore public services, families remain worse off under the Tories. Furthermore Nowak said that introducing the measure to abolish non-dom status was “too little too late”.

“People will never forget that when our schools and hospitals were starved of funds, the Tories put the very wealthiest first,” said Nowak. “His failure to act sooner on non-doms cost the exchequer billions in lost revenue.”

Leader of Unite the union Sharon Graham said the national insurance cut is “small change” when the average worker has taken a £3,100 pay cut from inflation.

“Meanwhile, corporate profits have soared by nearly twice the rate of wages,” highlighted Graham.

Leader of the UK’s largest trade union Unison also criticised the budget tax cuts, with the reminder that taxes remain overall at a record high. 

Christina McAnea commented following the budget that it was “the stuff of fantasy” and that “the public won’t be fooled”, when the majority want “functioning local services” over a “few possible extra pounds in their pockets”. 

Mick Lynch, general secretary of the RMT union representing rail workers echoed Nowak as he slammed the budget as one of “tax cuts and gimmicks”. Lynch said it was designed “to thinly disguise a Tory government only interested in propping up the super rich”.

Budget fails public services

Union leaders have unanimously condemned a lack of investment in public services in the budget, as Mick Lynch emphasised, “The only way you get real growth that benefits working people is by investment in publicly owned public services, transport infrastructure and a general wage rise to increase spending power in the economy.”

GMB union national secretary Andy Prendergast said the budget had failed to deliver for public services and industries like steel, which are “crying out” for investment after “more than a decade of neglect”. 

Sharon Graham, also blasted the budget’s lack of investment in public services which she said has left the UK lagging far behind comparable G7 nations. “Once again the budget offers nothing but the same old failed choices and phony fiscal rules,” Graham slammed. 

Education

Education unions condemned a “missed opportunity” to tackle the worsening crisis facing both lower and higher education.

Daniel Kebede, general secretary of the NEU teachers’ union warned the spring budget announcement will throw education “into further crisis”. He blasted the lack of cash for education, highlighting how 70% of schools have less funding now in real terms than in 2010.  

“This is the desperate last hurrah of a Government seeking to buy votes before a General Election with tax cuts and perks for their friends, rather than doing what is right for our children,” Kebede said. 

“Even after the investment of £105 million for special free schools, the Chancellor plans to cut capital investment in education from £6.3 billion pounds this year to £6.1 billion pounds next year.

“Anything less than serious additional investment in schools and colleges is a betrayal of parents and young people as well as of educators.”

While leader of the University and College Union Jo Grady said the budget was a “missed opportunity” to provide long term investment and tackle the “deepening crisis” facing higher education. 

NHS

Hunt announced that £3.4 billion will be made available to overhaul old NHS IT systems, however Pat Cullen of the RCN nurses’ union said his productivity plans were meaningless if there weren’t enough nurses to actually use the technology in the first place. 

Cullen warned the budget laid the ground for the nursing crisis to worsen amid an NHS staffing crisis, and a lack of financial measures to boost domestic nurse recruitment. 

Arts and entertainment

A glimmer of good news was reported in a permanent corporate tax relief for theatres, as the Chancellor’s support for tax relief and investment in arts infrastructure was recognised by the union Equity who said it showed recognition for the importance of the arts and entertainment industry. 

However the creative arts union was quick to highlight this within the context of over a decade of austerity in the industry, with over £1 billion of local government arts cuts since 2010. 

Once again, the decimation of funding to date has soured reactions, as Equity went on to stress that the workforce “bears the brunt of cuts through job losses, shuttered venues and strained public services”.

“Our members are clear; they want to see a pay rise, not tax cuts which favour the wealthy at the expense of the public good,” highlighted Equity leader Paul Fleming. 

Fuel duty freeze

Hunt confirmed the government will extend a temporary fuel duty cut for another year, at the cost of £5 billion, boosting motorists, however remaining “silent on public transport” TSSA union said.

The budget measure was accused by the rail union of giving more “Tory hot air”, with a “reckless pro motorists budget” that merely offered “bribes to voters”, over a long-term economic plan.

“What we really heard today was more Tory hot air when the country requires substance.” 

(Image credit: HM Treasury)

Hannah Davenport is news reporter at Left Foot Forward, focusing on trade unions and environmental issues

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