"Today's budget is a vital first step towards the growth, jobs and living standards working people desperately need."

The Chancellor of the Exchequer Rachel Reeves today delivered her first budget since Labour entered government earlier this year. Being Labour’s first budget in 14 years, it has naturally attracted significant public discussion and reaction from across the political spectrum.

The UK’s trade unions are among the organisations to issue extensive responses to the budget. And, in general, the budget has been welcomed by the labour movement.

Giving an overall verdict on the budget, the GMB union’s general secretary Gary Smith said: “After 14 years of chaos and failure, it’s great to see a serious budget that focuses on the big issues facing our country.

“Much needed money for schools, including SEND, hospitals and a hefty wage rise for millions of low paid workers is something to be celebrated.

“And, there is good news on investment in hydrogen and carbon capture and storage. But, the government must get moving on other key infrastructure projects too – starting with a new nuclear power station at Sizewell.”

In a statement, the Trades Union Congress (TUC) called the budget a ‘vital first step’ towards growth. The statement read: “Today’s budget is a vital first step towards the growth, jobs and living standards working people desperately need.

“The Chancellor was dealt a terrible hand by the Conservatives – economic chaos, falling living standards and broken public services. But with today’s budget she has acted decisively to deliver an economy that works for working people.

“Tax rises will ensure much-needed funds for our NHS, schools and the rest of our crumbling public services, with those who have the broadest shoulders paying a fairer share. The Chancellor was right to prioritise hospitals and classrooms over private jets.

“There is still a lot more work to do to clean up 14 years of Tory mess and economic decline – including better supporting and strengthening our social security system. But this budget sets us on an urgently needed path towards national renewal.”

Public service workers’ union UNISON likewise praised the budget. UNISON assistant general secretary Jon Richards said: “The chancellor’s vision shows economic stability can be restored by investing in the NHS, schools, care and local councils.

“Good quality, well-funded and sufficiently staffed services are essential for a healthy, highly skilled and well-supported population.

“The last government hid the true state of the country’s finances, leaving public services in tatters. No one should have to put up with long delays for treatment, dilapidated schools, roads full of holes, community facilities sold off to prevent councils from going under or a lack of support when their elderly relatives need care.

“By putting up the minimum wage and ending the freeze on tax thresholds, the government has shown it understands the pressures working families face.

“Asking those with deeper pockets to pay more is the right thing to do. Decent public services can’t be delivered on the cheap. It’s important to spend to invest in the UK’s future.”

On specific elements of the budget, the verdict has been more mixed. The move to raise the minimum wage by 6.7 per cent has been welcomed by many in the trade union movement. Paddy Lillis – the general secretary of the shop workers union Usdaw – said: “Usdaw very much welcomes these significant pay increases for the lowest paid, after a three-year long cost of living crisis under the Tories.

“We are pleased that Labour’s new remit for the Low Pay Commission has resulted in progress towards delivering a statutory real living wage and started on the road to ending rip-off youth rates.

“Usdaw has consistently campaigned for a legal minimum hourly rate of over £12 per hour, so we are pleased to see that achieved within months of Labour being elected. We are now looking for a roadmap to achieve £15.”

Paul Nowak – the TUC general secretary – made similar comments. He said: “The TUC wants to see a £15 minimum wage as soon as possible – but this is an important step forward. When low paid workers get a pay rise, we all benefit, because that money goes straight back into local communities.”

However, some unions were critical of other elements of the budget.

The UCU – which represents teaching staff in universities and colleges – has criticised the lack of funding for universities. Jo Grady, the union’s general secretary, said the budget was ‘thin gruel’ for the higher education sector. She said: “Today’s Budget is thin gruel for those working in universities. Employer national insurance rises will hit the sector hard when higher education is already on its knees. Universities are crying out for increased public funding to secure their future as Britain’s last world-leading sector, yet the Chancellor failed to deliver.

“There will be no decade of national renewal if the government’s approach to universities continues to be one of de facto disinvestment. This is not a matter of special pleading: a properly funded higher education sector is a foundation stone of economic growth”

Meanwhile, civil servants’ union PCS, expressed concern about the impact efficiency savings on government departments will have on public services. The union’s general secretary Fran Heathcote said: “The Chancellor seems to have given with one hand while taking away with the other.

“By announcing a 2% ‘productivity, efficiency and savings target’ for all government departments, she appears to be wiping out the 1.7% real terms increase in departmental spending. This is concerning at a time when the vital public services our members work so hard to deliver are crying out for real investment.”

Chris Jarvis is head of strategy and development at Left Foot Forward

Image credit: Lauren Hurley / DESNZ – Creative Commons

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