How Labour MPs and unions reacted to the budget

John Healey has delivered his first budget as Chancellor, in what he called a ‘budget for working people’, against a backdrop of gathering clouds and a number of constraints. These include demands he do more to tackle the cost-of-living crisis, while also bringing down government borrowing and debt as well as sticking to Labour’s fiscal rules and not spooking the bond markets.

The budget contained a number of positive measures to give people up and down the country much needed breathing room amid an inflation rate of 3.5% for September and with energy bills forecast to raise by 16%. There is also speculation that the U.S. could once more carry out strikes against Iran, further deepening economic shocks and sending energy prices soaring.

Healey’s rabbit out of the hat moment this budget was a £100 energy payment for 20 million households up and down the country for properties in council tax bands A-D.

He also announced that the national minimum wage and national living wage will increase by 3.9% for 2.3 million workers, as well as increasing the threshold for small business rate relief for retail hospitality and leisure businesses from £12,000 to £18,000 – stopping 70,000 businesses from paying them altogether.

You can read a round-up of the budget’s key takeaway’s here. So how did trade unions and MPs react? Here’s some of the reaction below:

Sharon Graham, General Secretary of Unite

Unite has welcomed some of the measures contained in the budget however the union has said that the chance to show tangible change for working-class families struggling with the deep cost of living crisis has been missed.

Unite general secretary Sharon Graham said: “As I have been saying repeatedly in my meetings with the Prime Minister and the Chancellor, our members wanted two things from this budget: money in their pockets now, and a plan for investment and jobs.

“Whilst there is some welcome news in this budget – including relief on energy bills and some investment in jobs – these are baby steps rather than a decisive leap forward.

“The noose around the neck of wages, in the shape of frozen tax thresholds, must be dealt with. Started by the Tories in 2022, it is dragging workers into unfair tax bands and reducing disposable income. This cannot continue.”

“This was the government’s first big chance to show real tangible change. The window to win back the working class will not stay open for long.”

Bolder policies needed to make PM’s vision reality, says UNISON

Responding to the budget today UNISON general secretary Andrea Egan said: “From taxing the banks to grappling with energy bills, there’s much to welcome in this budget. Making the uplift in mileage rates permanent will make a real difference to public service workers.

“But this was the government’s first chance to turn the prime minister’s historic ambition for a new economic settlement into action. On that count it falls short.

“To improve ordinary people’s everyday lives in a way that lasts, the government needs to move beyond small fixes and deal with the fundamental causes of the miseries so many face.

“There’s no doubt about what’s needed: undoing privatisation, ending the scourge of outsourcing and making the wealthiest pay their fair share to properly fund public services. It all follows from the prime minister’s powerful analysis.” 

“The prime minister needs to trust his own ideas and defy the forces trying to bind him to economic orthodoxy. A confrontation with the vested interests that profit from the status quo can only be deferred for so long.”

Community Union welcomes action on tackling the cost of living crisis

Community General Secretary Alasdair McDiarmid said: “Under difficult global conditions, the Chancellor has published a budget that follows in the traditions of the labour movement. 

“He has minimised damage to the wallets of working people and continued the path of re-balancing our economy so that all regions and nations benefit from our national prosperity. 

“Community welcomes the impactful measures that the Chancellor has prioritised, such as capping bus fares, removing charges on household energy bills and granting thousands of our members a £100 energy payment this winter. These will give millions of workers much-needed breathing space during a cost-of-living crisis. 

“The extension of Statutory Paternity Pay to 150,000 individuals is particularly welcome to our self-employed members who Community has long argued require greater social protections in times of need. 

“The Chancellor promised a budget that would provide breathing space. We have seen that budget delivered today.”

Reacting to the budget Defence Secretary Wes Streeting said: “I’ve said since my first day as Defence Secretary that I trust this Chancellor to give us what we need to keep our country safe. Today demonstrates why.

“We’re delivering the biggest sustained increase in defence spending since the Cold War. Today the Chancellor not only restated our NATO commitment to spend 3.5% of GDP by 2035, but also to spend 3% by 2030.”

Energy secretary Miatta Fahnbulleh said: “40 years of failed energy policies have driven us to this point.

“If we want a system that’s fair, affordable & works for the British people – we need public control.

“Today’s Budget is about giving people breathing space while we fix the broken system & put the public in control.”

Labour MP John McDonnell said: “The Chancellor described today’s budget as a “breathing space” budget. The individual measures to help on the cost of living crisis on energy, housing and food are very welcome but the important issue now is how the time secured as a breathing space is used to address the pressures people are under. The Spending Review next year is the opportunity to develop a radical agenda to deliver the investment needed in our economy and public services and to secure a tax system that redistributes wealth at scale to overcome the levels of inequality and poverty in our society.”