UK
Sir Keir Starmer on collision course with trade unions - after warning he will reject their demands on public sector pay

By JASON GROVES IN WASHINGTON DC

DAILY  MAIL
PUBLISHED 11 July 2024

Sir Keir Starmer was on collision course with trade unions last night after warning he will reject their demands on public sector pay.

The Prime Minister said the 'very poor state' of nation's finances meant the government would not be able to afford bumper pay rises for six million public sector workers.

Speaking to journalists at the Nato summit in Washington, Sir Keir said the government would prioritise 'economic stability' to bring down 'punishing' mortgage rates.

Unions have signalled that they want the new Labour government to open the spending taps and sign off big pay increases for the public sector after years of tight settlements under the Conservatives.

But the PM warned they should not expect their demands to be met, adding: 'Obviously, there are a number of pay settlements to be gone through on the annual basis. But the finances are in a very poor state, I think that is obvious.

Sir Keir Starmer was on collision course with trade unions last night after warning he will reject their demands on public sector pay

Daniel Kebede, NEU general secretary (pictured in 2019), said the education system was already at 'breaking point'

'And that's why we've been careful in what we said going into the election, and we'll be careful what we say coming out of it.'

Public sector pay deals cover almost six million workers including doctors, nurses, teaches, the police and the armed forces.

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The National Education Union has warned it could call industrial action unless teachers get at least four per cent - double the rate of inflation.

The Royal College of Nursing has said its members expect a rise 'substantially' above inflation.

Union leaders reacted angrily to Sir Keir's stance last night.

Daniel Kebede, NEU general secretary, said the education system was already at 'breaking point'.

'This is not what we want to hear from the new Prime Minister,' he said. 'We expect an above inflation teacher pay offer that is fully funded. Failing to provide properly funded pay increases will have severe costs in terms of recruitment, retention and the delivery of education.

'Education is already at breaking point. Another below inflation pay rise will break it.'

Junior doctors and consultants from the BMA at a picket line outside University College London Hospital during a three-day joint walkout in October

Sharon Graham, Unite general secretary said: 'The biggest crisis facing the NHS and other public sector areas is the inability to recruit and retain workers, caused by many years of pay freezes and below inflation pay rises'

Sharon Graham, Unite general secretary said: 'The biggest crisis facing the NHS and other public sector areas is the inability to recruit and retain workers, caused by many years of pay freezes and below inflation pay rises. Experienced staff are leaving the NHS in droves.


'If we don't sort out the crisis of people, we won't sort out the crisis in the NHS. New scanners need staff to operate them. Whatever the plan, it will need more money. This is the undeniable fact.'

Sir Keir indicated that stabilising the public finances in order to bring down the cost of living was the government's focus.

He said previous turmoil had sent mortgage rates 'through the roof', adding: 'Economic stability is the first step when it comes to growth of our economy. We need that stability in order to ensure that we can bring mortgages down.

'They are punishing people, I mean people coming off fixed-rate mortgages are almost invariably having to pay hundreds of pounds more per month. And for - there's too many examples I have given to too many people before - of people on even dual incomes into their house who can't afford the mortgage.

'We (also) need to stabilise the economy for a secondary reason and that is to attract investment in and that will only come if there is a stable economic environment.'