Keir Starmer has said there is “light” at the end of the tunnel but it will be difficult to reach as he delivered a warning to unions over future pay deals.
The Prime Minister said he owed it to public sector workers to be honest about the challenges ahead but struck a cautiously optimistic tone in a speech to the Trades Union Congress (TUC) in Brighton. He said “tough decisions” will be needed on future pay settlements to protect economic stability.
And the PM said he would “make no apologies” for some of the controversial choices his Government has already made, such as slashing the winter fuel allowance. A heckler shouted “tax the rich” during the speech, which ended with a standing ovation.
Mr Starmer was also challenged by Alan Crosbie, a teacher who is national president of The Educational Institute of Scotland, who asked what he’s doing to end child poverty after refusing to scrap the two child benefit cap.
The speech – the first to the TUC from a PM in 15 years – came at a fraught moment for the Government, ahead of a vote on controversial plans to cut the winter fuel allowance for 10 million pensioners. Up to 50 MPs are expected to take a stand on the issue but the Government is refusing to backtrack.
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Mr Starmer told the audience that the bill is in for “expensive, divisive, noisy performance” politics of the Tories – adding: “If we don’t take action, that cheque will bounce.”
“Britain left with a social black hole and a financial one – £22bn this year alone,” he said. “Nobody in this room wants to hear such a gloomy forecast – I know that. I don’t want to be saying it either, It’s not how any Government would want to start its work.”
ln an appeal to critics, he said it would take time to deliver change, but added: “The light of a fairer Britain, a more prosperous, secure and dynamic country is at the end of the tunnel. That does not mean the way towards it has become any easier.”
Mr Starmer said there will be “tough decisions” on future pay deals after the Government approved above inflation wage hikes for teachers, NHS staff and train drivers in the summer. He said: “This Government will not risk its mandate for economic stability, under any circumstances.
“And with tough decisions on the horizon, pay will inevitably be shaped by that. I owe you that candour because – as was so painfully exposed by the last government – when you lose control of the economy it’s working people who pay the price.”
But his comments triggered a backlash from some union leaders.
GMB General Secretary Gary Smith said the Government had a huge job to clean up the Tories mess, which included years of undervaluing public sector workers.
He said: “We have seen some positive action from the new government, with above inflation pay awards already in place. But, GMB’s public sector members are clear: this must be a start and not a finish.”
Unite General Secretary Sharon Graham said: “It’s clear that Britain is better under a Labour government, however change must mean change. Tinkering around the edges is not enough. Labour must rule out austerity mark two and ensure we address the crisis in our crumbling public services and the lack of investment in British industry.”
PCS general secretary Fran Heathcote said: “We’ve had enough of being told about ‘tough decisions’. The real tough decisions are forced upon our members every day trying to make ends meet.” She added: “You cannot solve the problems caused by austerity with more austerity.”