Unions call on Prime Minister to rule out “crippling” cuts to public services

General secretaries of 18 trade unions and the TUC have called on Liz Truss and Kwasi Kwarteng to give a “cast-iron assurance” that they will not make cuts to public services amid fears of a “crippling round of austerity this November”.

An open letter to the Prime Minister and Chancellor – signed by the TUC’s Frances O’Grady and the leaders of Unite, FBU, UNISON, GMB, NEU, NASUWT, NAHT, RCM, PCS, Prospect, FDA, POA, NAPO, Community, CSP, RCP, BDA and HCSA – told them that “strong public services are vital to this nation’s health and the economy”.

The general secretaries reminded Truss: “Prime Minister – you promised in your leadership election campaign that there would be no reduction in public spending. But according to reports, another wave of crippling austerity could be on its way in November in order to fund tax cuts for the super-rich.

“This would be an act of national vandalism and a huge betrayal of the British people. We therefore seek an urgent meeting with you and the Chancellor, and a cast-iron assurance that you will not make further real-terms cuts to public services – now or in the future.”

The Bank of England was forced into emergency action to halt a run on Britain’s pension funds after Kwarteng’s mini-Budget prompted fears of a 2008-style financial crisis. The Bank reported that the reaction to a dramatic rise in government borrowing left it with no choice but to intervene.

In a reversal of policy announced the day before Kwarteng delivered the mini-Budget, the Bank revealed on Wednesday that it was setting aside £65bn to buy bonds to ease pressure on pension funds and insurance companies.

Since the mini-Budget, sterling has hit its lowest ever level against the US dollar and the government has been criticised by the International Monetary Fund (IMF), which warned that the tax-cutting policies announced – including the abolition of the 45p rate of income tax – would result in greater inequality.

The Chancellor is expected to use a statement on November 23rd to announce measures to persuade the markets that he can get the UK’s public finances back under control. Treasury sources confirmed that ministers from all departments are to be asked to find “efficiency savings”.

The unions urged Truss and Kwarteng not to take aim at public services, telling them: “Frontline services are already at breaking point. They must not be sacrificed to make the top 1% even richer.

“Unions will not sit by and allow the government to impoverish public services and the amazing staff who deliver them. We won’t allow the social fabric of this country to be destroyed.”

According to analysis by the Resolution Foundation, the Tories’ mini-Budget will leave an individual earning £200,000 per year £5,220 better off next year, rising to £55,220 for a £1m earner. Those earning £20,000 a year will gain just £157.

Keir Starmer accused the Conservatives of having “lost control of the British economy” during his leader’s speech at Labour Party conference on Tuesday, adding: “And for what? They’ve crashed the pound – and for what?

“Higher interest rates. Higher inflation. Higher borrowing. And for what? Not for you. Not for working people. For tax cuts for the richest 1% in our society. Don’t forget. Don’t forgive. The only way forward is to stop this – with a Labour government.”

Labour has called on the Prime Minister to recall parliament to reverse the policies announced in the government’s mini-Budget. Truss has so far resisted calls to go back on the commitments made by her Chancellor.

On a broadcast round with regional media this morning, the Prime Minister said: “I have to do what I believe is right for the country and what is going to help move our country forward.”

She claimed the turmoil of the past week has been caused by “global problem”. She added: “We’ve seen difficult markets around the world because of the very difficult international situation we face. And what our government has done is we’ve taken decisive action.”

Below is the full text of the letter sent to the Prime Minister and Chancellor.

Dear Prime Minister and Chancellor,

Strong public services are vital to this nation’s health and the economy.

But since 2010 our hospitals, schools, councils, care homes, prisons and other essential services have been forced to absorb savage spending cuts. And every month the bills they face are rising, leaving much less for actual services.

This has come at a huge cost to communities across Britain.

NHS waiting lists are at record highs, school buildings are literally crumbling before our eyes and local government is on its knees.

Meanwhile, nurses, teachers, firefighters and millions of other key workers you clapped during the pandemic have seen their living standards decimated with over a decade of pay cuts and wage freezes.

Every month dedicated staff are quitting in their droves – tired of being taken for granted and of services being run down.

This cannot go on.

Prime Minister – you promised in your leadership election campaign that there would be no reduction in public spending.

But according to reports, another wave of crippling austerity could be on its way in November in order to fund tax cuts for the super-rich.

This would be an act of national vandalism and a huge betrayal of the British people.

We therefore seek an urgent meeting with you and the Chancellor, and a cast-iron assurance that you will not make further real-terms cuts to public services – now or in the future.

Frontline services are already at breaking point. They must not be sacrificed to make the top 1% even richer.

Unions will not sit by and allow the government to impoverish public services and the amazing staff who deliver them.

We won’t allow the social fabric of this country to be destroyed.

Yours sincerely

Frances O’Grady – general secretary, TUC
Christina McAnea – general secretary, UNISON
Sharon Graham – general secretary, Unite
Gary Smith – general secretary, GMB
Kevin Courtney, Mary Bousted – joint general secretaries, NEU
Patrick Roach – general secretary, NASUWT
Paul Whiteman – general secretary, NAHT
Gill Walton – chief executive, RCM
Matt Wrack – general secretary, FBU
Mark Serwotka – general secretary, PCS
Mike Clancy – general secretary, Prospect
Dave Penman – general secretary, FDA
Steve Gillan – general secretary, POA
Iain Lawrence – general secretary, NAPO
Roy Rickhuss – general secretary, Community
Karen Middleton – chief executive, CSP
Mark Sargeant – acting general secretary, RCP
Annette Mansell-Green – head of employment rights, BDA
Paul Donaldson – general secretary, HCSA