Unions threaten ‘winter of discontent’ as inflation races ahead of wage growth
Philip Hammond will set out plans to ease pressure on millions of public sector workers in his first Autumn budget amid warnings that coordinated strike action could bring about a new “Winter of Discontent”.
The Chancellor confirmed the budget would be delivered on 22 November as Downing Street revealed the pay cap for public sector workers in the rest of the UK would end from next year.
However, the announcement was dismissed by unions as “pathetic” with new figures confirming inflation continues to race ahead of wage growth.
Risingclothingandfuelprices pushed up the Consumer Price Index (CPI) to 2.9 per cent in August, up from 2.6 per cent in June and July and higher than forecasts.
Len Mccluskey, the general secretary of Unite, warned that joint union action could be on the horizon unless the government gives all public sector workers a pay rise.
He warned ministers that unions could break rules imposed this year requiring strike ballots to have a turnout of 50 per cent in order to be legal.
“If the government has pushed us outside the law, they will have to stand the consequences,” Mr Mccluskey told the BBC’S Today programme. The Scottish Government has already pledged to abandon the 1 per cent pay freeze for nurses, teachers and police in Scotland from next year.
Downing Street said there would be greater “flexibility” in setting public sector pay for 2018-19, suggesting Scotland could see a windfall through the Barnett formula if additional money is found to fund increases.
Mr Hammond said the Budget was an opportunity for the Government to “set out our thinking on how to keep the economy strong and resilient and fair – an economy that works for everyone”.
The scale of the challenge he faces in trying to boost living standards was underlined by the latest inflation figures, which reflected the continued impact on the value of the pound from last year’s EU referendum.
Rising costs of clothing and footwear put the greatest pressure on overall inflation, with prices rising by 4.6 per cent year-on-year in August.
A Treasury spokesman said: “We know some families have concerns with their day to day cost of living. That’s why we are boosting take home pay with tax cuts for over 30 million people and a National Living Wage that is giving the lowest earners their fastest pay rise for 20 years.”