How trade unions reacted to the Chancellor’s summer statement

Chancellor Rishi Sunak made a series of announcements in his summer economic update in parliament this afternoon. Here’s how the trade unions reacted…

UNISON

General secretary Dave Prentis concluded that “the Chancellor has firmly closed the door on the damaging austerity of the past decade” – but warned that while there was a lot for young people, there was “next to nothing for public services”.

He argued that “investment in our public services would help speed the country back to recovery”, and said that “with extra funds, national and local public services could provide many more jobs”.

Prentis added: “Covid-19 has shown how much we all need public services. Funding them properly can help the economy and bring back the support and security to every community that’s long been missing.”

Unite

Unite pointed out that the Chancellor made no mention of the aviation or aerospace sectors in his statement, highlighting that thousands of job losses had been seen across both in recent weeks.

The union supported Labour’s Darren Jones MP when he argued that “the Chancellor failed today to set out sector-specific help for British manufacturing” in his contribution to the debate in parliament.

Unite also backed the intervention from Sarah Owens MP, who compared the government’s support for aviation to that of other countries: “If the governments of France and Germany are protecting their aviation workers, why isn’t this government?”

TUC

General secretary Frances O’Grady said that ‘kickstart’ – a scheme to subsidise work placements for young people outlined today – is a “good first step”, but argued: “The government should have announced extra investment in jobs across all public services.”

She said: “The Chancellor should have announced targeted support for the hardest-hit sectors like manufacturing and aviation. Struggling businesses will need more than a one-off job retention bonus to survive and save jobs in the long-term.

“Unions campaigned for a job guarantee scheme. Kickstart is a good first step. But if the government allows vital industries to go the wall, unemployment will surge and the recession will last far longer.”

She added: “If the chancellor wants people to have the confidence to eat out, he should have announced a pay rise for hard-pressed key workers rather than dining out discounts for the well-off.”

GMB

John Phillips, GMB acting general secretary, described the package as a “good start” and welcomed the investment. But he stressed that the new jobs must be good jobs and the training opportunities “real”.

The GMB also warned that sectors not mentioned, such as public services and aviation, “risk being left behind”, and said: “This cash boost must end up in the pockets of those who need it – the workers – not the offshore accounts of shareholders and CEOs.”

TSSA

TSSA general secretary Manuel Cortes welcomed the “additional support for the tourism industry”, but highlighted that there had been “no clarity whatsoever on whether this support will be available for our high-street shops”.

He said: “We are also bitterly disappointed by the gaping hole in the statement with no mention of further support for our public transport networks – even though we know private providers are struggling.”

Usdaw

The retail trade union said it was “shocked that no mention was made of the tens of thousands of retail jobs already lost or the difficulties the high street is facing, let alone any suggestion of a recovery plan”.

General secretary Paddy Lillis argued that the VAT cut for hospitality “should have been extended to retail”, called for government to work with unions and employers “to develop a much needed retail recovery plan”.

FBU

FBU warned that “coronavirus is threatening to bankrupt our local authorities” and said that without government support “another wave of austerity for our public services, including the fire service, could be inevitable”.

The fire brigades union added: “And what does the Chancellor give us in his summer statement? Half price pizzas.”

And others…

Dr Faiza Shaheen, director of the Centre for Labour and Social Studies (CLASS), said it was a “sticking plaster on the same old failing economic system” and “extremely timid” rather than a “new deal for the planet, workers and public services”.

She added: “This ‘mini-budget’ is more about political insulation from future public anger at rocketing unemployment rather than learning the lessons of the pandemic.”

Carys Roberts, executive director of IPPR, said: “The Chancellor has listened to calls to invest in young people and in green homes. But as a package, this was more of a cut-price deal than a new deal.

“We’re facing a deep and uncertain recession that could leave one in ten unemployed by the end of the year. But today’s announcements fall far short of the investment needed to both protect viable businesses and create new jobs.”

She added that the Chancellor had made some “strange choices in his priorities”, pointing out that the £3.8bn stamp duty holiday would “push up prices and amounts to more than all the support announced for young people today”.

Acting director of the Joseph Rowntree Foundation Helen Barnard argued that the ‘mini Budget’ did not do enough to tackle poverty and warned that many families are “being pulled deeper into poverty and debt right now”.

She urged the Chancellor to “urgently reconsider increasing the child element of Universal Credit and child tax credits by £20 a week to help families stay afloat during this period of considerable anxiety”.

Director of Generation Rent Alicia Kennedy condemned the lack of help for renters: “It is tragic the Chancellor did not take the chance to help the half a million renters who have got behind on their rent in the last few months.”

Andy Chamberlain, director of policy at the Association of Independent Professionals and the Self-Employed, observed that the self-employed were “noticeable by their absence”.

He urged the Chancellor to introduce a “tapered end” to the self-employment income support scheme and to back those who missed out on support during lockdown.