CHANCELLOR Brown’s budget yesterday outlined savage attacks on the working class, particularly low paid workers.
His decision to abolish the 10 pence tax rate for the lowest paid in favour of a 20 pence tax rate for all of the lower paid makes the poor even poorer.
As well Brown pledged to hold fast to wage cutting for millions of public sector workers as the central feature of his ‘fight against inflation’.
He emphasised that he would keep public sector pay rises down to two per cent, imposing a 2.6 per cent pay cut, according to the government’s own inflation figures, and probably a greater annual pay cut in the following years.
Brown also pledged to go further than Gershon’s recommendation to axe 100,000 civil service jobs.
He also emphasised that he would privatise another £36 billion of state assets, including privatising student loans. He reserved a special spleen for Employment Tribunals. He assured employers, who want these tribunals abolished that ‘the right policy is to combine the most modern and flexible competition regime including, as announced today, the further extension of risk based regulation – into employment tribunals – with the most effective incentives and support for British investment and British innovation.’
Employment tribunals are for the chop. This will be another blow in favour of bullying and exploitative employers.
While cutting corporation tax for big business, Brown stood shoulder to shoulder with the venture capitalists and refused to accede to trade union demands and end their huge tax rebates on the debt that they load onto just acquired companies.
The trade union leaders were positively mild about the Chancellor’s attacks.
Paul Kenny, GMB General Secretary cautioned Brown over his wage cutting policy after praising the budget overall. He warned as if he was making a weather forecast: ‘Unless the Chancellor changes this approach there is bound to be turmoil.’
He added: ‘The GMB is disappointed the Chancellor has missed an opportunity to end the gravy train for the multi-millionaire elite who are given tax breaks on the proceeds of their asset stripping activities in the private equity industry’.
Workers at the business end of the regimes imposed by the venture capitalists are more than disappointed, they are very angry!
Mark Serwotka, general secretary of the Public and Commercial Services Union (PCS) said: ‘The Chancellor today has signalled yet more cuts . . .
‘With tens of thousands of civil and public servants facing a pay cut in real terms this repeated commitment to peg pay below inflation will fuel growing resentment.’
In conclusion he said: ‘Today’s budget will offer little reassurance and makes the possibility of further action imminent unless civil service management and government sit down with the unions and properly negotiate over the key issues of jobs, pay and privatisation.’ ‘Properly negotiate’ is just what Brown will not do.
The NASUWT teachers’ union warned Brown: ‘Putting a two per cent cap on public sector pay would jeopardise his agenda’ (allegedly this is ‘maintaining a world-class school workforce which is highly rewarded and motivated’).
Tony Woodley, T&G General Secretary, said incredibly: ‘Pensioners and low-paid workers will receive a welcome boost from today’s Budget. . . Yet public sector workers at the frontline of delivering the services that make people vote Labour continue to be shunned, whilst big business gets a corporation tax cut.’
UNISON stated: ‘The treasury should not impose artificial pay caps.’ The union added that it wanted urgent talks with the chancellor to secure funding for equal pay for women that was not mentioned in the budget.
What the millions of trade union members require is a call to arms not a few bleats to Brown urging the bosses’ chancellor to be more reasonable.
In fact Blair and Brown are helping the Tories back into power. To stop this manoeuvre in its tracks, the trade unions must be made to take action to bring the Blair-Brown government down and bring in a workers’ government that will carry out socialist policies.
