Unions attack Osborne’s Budget over “lost decade”

Budget 2016 George Osborne

Trade unions have attacked George Osborne’s Budget for imposing further spending cuts and for failing to invest in public services or struggling industries. 

Union bosses spoke out over the Chancellor’s decision to slash rates of corporation tax and other forms of business tax without awarding award extra money to public services creaking under increased demand and a lack of investment.

Workers’ groups highlighted lower growth forecasts and linked them to six years of Tory spending cuts. They attacked the Conservatives’ for imposing a bigger burden on lower-income families or other disadvantaged groups and cutting taxes for business owners.

Dave Prentis, General Secretary of UNISON, said the “painful” cuts would continue to harm communities.

“The Chancellor’s economic policies have wreaked untold damage on essential community services. Local councils have already cut back so much that there’s little else that can go. Their cupboards are already bare, but still the Chancellor demands more.”

Frances O’ Grady, TUC General Secretary called on the Chancellor to support investment.

“The next generation needs a strong economy with more decent jobs. But instead they are faced with more than a decade of lost wages, hundreds of children’s centres and libraries closing, and the prospect of further cuts hitting public services into the future,” she said.

“A fair Budget for the next generation would have delivered far more investment in infrastructure, jobs and homes and fewer eye-catching gimmicks.”

Brian Rye, acting General Secretary of construction union UCATT, said the need for housing investment was crucial but had been ignored.

“The Chancellor claims to want to reward workers but there was nothing in the budget to solve the housing crisis. This is the first Government for over 40 years not to invest any capital in new social housing. A programme of social house building would be good for families, good for construction workers and good for the country – but as it is not good for millionaires it is not even considered.”

Len McCluskey, Unite general secretary, accused Osborne of obscuring the truth on jobs and pay.

“He has had to revise down his own growth targets because his so-called jobs ‘miracle’ is actually a jobs fraud. Real, shared prosperity is impossible in an economy built on low pay and where zero hours jobs have risen by 15 per cent in recent months.

“Working people are still £40 a week poorer because of his policies. His senseless drive to run a surplus by 2020 will be paid for out of the wage packets of people who deserve far better than broken services and a personal debt burden that is the heaviest in the western world.

Roy Rickhuss, General Secretary of the steelworkers’ union Community, attacked the reforms of business rates:

“The Government’s much heralded review of business rates has failed to deliver the urgent support that the steel industry needs. Steel producers will continue to be penalised with high business rates for the investments they have made, adding uncompetitive costs in a difficult global market. The march of the steel makers will continue to be along a rocky road, with steel jobs and steel communities under threat of more pain.”

 

More from LabourList

DONATE HERE

We provide our content free, but providing daily Labour news, comment and analysis costs money. Small monthly donations from readers like you keep us going. To those already donating: thank you.

If you can afford it, can you join our supporters giving £10 a month?

And if you’re not already reading the best daily round-up of Labour news, analysis and comment…

SUBSCRIBE TO OUR DAILY EMAIL