Spring Statement: Reeves under fire from Labour’s three biggest unions

The leaders of five of Labour’s affiliated trade unions have spoken out over the Spring Statement, including the three biggest unions sounding the alarm over welfare cutbacks.

Chancellor Rachel Reeves confirmed welfare reforms will go even further in seeking savings than set out last week, as the Office for Budget Responsibility did not anticipate last week’s measures would save as much as Treasury officials had hoped.

The announcement sparked a backlash from not only Unite general secretary Sharon Graham, a longstanding critic of the current government from the left, but also two leaders who have often kept their powder dry in recent years: Gary Smith of the GMB and Christine McAnea of Unison, Britain’s largest trade union.

Together they represent the three biggest Labour trade union affiliates by membership numbers. Meanwhile the Fire Brigades Union’s Steve Wright and TSSA’s Maryam Eslamdoust also spoke out today.

Even Paddy Lillis, one of the government’s staunchest backers as general secretary of Usdaw, said the shopworkers’ union would “make clear our members’ view that the welfare system should be working for ordinary people, not against them”. But he said the Spring Statement did show the government “getting on with the job of delivering much-needed growth”.

Reeves hit back when asked by journalists for her message to those who criticise fiscal rules, warning: “There’s nothing progressive and there’s nothing Labour about losing control of the public finances.”

Read more of our Spring Statement news and analysis:

• ‘Ill thought out’ or ‘strong performance’? Reeves’ Spring Statement divides MPs
• Reeves under fire from Labour’s three biggest unions
• List of councillors quitting over welfare amid further cuts
• The four Labour achievements Reeves is trumpeting
• Reeves ‘confident’ civil service could cut 10,000 roles as Blunkett decries fiscal rules

Gary Smith, GMB: ‘Those in need didn’t crash the economy’

“14 years of Conservative chaos left deep scars across our country. But, it wasn’t those most in need who crashed the economy, and they shouldn’t be first in line to pay the bill for clearing up the mess.

“Tackling huge economic problems is a historic challenge. That’s why we need proper investment in key industries – and must nationalise them if necessary.

“Workers want to see their jobs secured and new ones appearing in their communities, or they will take their votes elsewhere.”

Christina McAnea, Unison: ‘Borrow more to invest’

“This government gets the value of public services. Unlike its predecessors whose economic policies left schools, hospitals and councils in tatters. But failure to invest in essential services and staff at this critical time for the UK would be a false economy.

“The chancellor’s been left with an unenviable task. The world has changed since the summer. But extraordinary times require bold solutions. With so little wriggle-room, the chancellor should stop backing herself into a corner with fiscal rules and borrow more to invest.

“Cuts to welfare and attacks on those least able to support themselves are not the right way to deliver a thriving economy, nor good quality public services. The Office for Budget Responsibility doesn’t always get things right and forecasts change.  The government has a plan to deliver growth for working people and must stick to it.”

Sharon Graham, Unite: ‘Snatching crumbs from the disabled’

“Rachel Reeves is right, the world has changed but why is it always everyday people that have to pay the price? They paid the price after the 2008 crash, the Covid pandemic and are now expected to pay the price again. It is simply wrong.

“Leadership must mean we look at the long term future of Britain, not reacting piecemeal. As the world changes, solutions and policies must change. There is absolutely no point doggedly keeping to fiscal rules, while society crumbles around you. There will be no brownie points for a clean sheet on fiscal rules amid a broken economy.

“Workers and their communities won’t thank or forgive Labour for maintaining outdated financial discipline, while they face economic misery and can’t make ends meet. This is the time for vision especially if we need growth.

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“The government is right to invest in our defence in an uncertain global world. Increased defence investment must not come at the expense of our public services and investment in British industry and our industrial infrastructure.

“Instead of snatching crumbs from workers, pensioners and the disabled, Labour should target the massive concentration of wealth built up by the richest one per cent. A wealth tax, as well as fairer taxes on corporate profiteers and the highest earners, would deliver far more money than any cuts to benefits and public services.”

“If the government pushes down a path of austerity mach two, where yet again workers and communities pay the price, Unite will not stand by and watch it happen.”

Paddy Lillis, Usdaw: ‘We’ll be looking closely at the impact on low-paid workers’

“In extremely difficult circumstances, we are pleased that the Government is determinedly laying the foundations for growth, after 14 years of Tory stagnation. Insecure work and low pay have held our economy back, so a new deal for workers in the Employment Rights Bill and a significant increase in minimum wage rates are essential. The Police and Crime Bill will go a long way towards tackling the £4bn-a-year drain on the retail industry that shoplifting, robberies and staff assaults have.

“Many of our members working in retail rely on Universal Credit to make ends meet. The Government has initiated a wholesale review of Universal Credit and Usdaw will make clear our members’ view that the welfare system should be working for ordinary people, not against them. We will be looking closely at whether the changes announced today by the Chancellor and the outcome of that review contribute to supporting low-paid working families.

“Labour inherited a broken economy and the world has changed. Today’s Spring Statement shows that the Government is getting on with the job of delivering much-needed growth. Fairness and prosperity for workers must be at the heart of the mission.”

Steve Wright, FBU: ‘An assault on the welfare state’

“The cuts in the Chancellor’s Spring Statement will cause misery and could cost lives. Working people and hard pressed claimants will face harsh poverty.

“The brutality of these cutbacks will put vulnerable people in an intolerable situation.

“It’s a disgrace that a Labour Chancellor would deliver an assault on the welfare state instead of taxing the wealthy to fund public services and increase workers’ pay.”

Maryam Eslamdoust, TSSA: ‘We expected better’

“This was a disappointing Spring Statement for TSSA members. The government has ignored the real issues facing the people who keep this country moving. Standards of living continue to decline, wages stagnate, and unfortunately there was no recognition of the vital role transport and travel workers play in the economy.

“We desperately need significant investment in our transport infrastructure to drive economic growth in every part of the UK. Instead, we saw cruel cuts to the Personal Independence Payments that help disabled people stay in work.

“The Chancellor is right that working people need more security. But instead of addressing fears over job losses under a future Great British Railways, the Chancellor confirmed them in the public sector. A publicly owned railway should serve the public, support rail workers, and boost the wider economy. Axing jobs is a false economy that undermines that goal.

“While any sign of economic stability is welcome in uncertain times, what’s missing is a serious, long-term commitment to protecting transport jobs and improving conditions for workers on the ground. A fairer, greener transport future is still possible but only with significant investment in infrastructure and a government that values the workforce behind it.

“This is not a budget for the many TSSA members working hard every day to keep Britain moving. We expected better.”

Read more commentary on the Spring Statement:

• ‘Why not draft in Martin Lewis to fill the fiscal hole?’
• ‘The Chancellor must not make foreign aid cuts worse’

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