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TUC calls on Chancellor to ‘act in the national interest’ and invest in public services

TRADE UNIONS called on Chancellor Jeremy Hunt to “act in the national interest” in today’s spring Budget by investing in public services and their workforce.

The TUC warned that without action to address pressure on front-line services, economic inactivity would keep growing.

“Years of underfunding and mismanagement have left our public services and their workforce at breaking point,” said TUC general secretary Paul Nowak.

“Every month experienced and dedicated public servants are quitting in droves because they are burned out, feel downtrodden, undervalued and are struggling to pay their bills. 

“If the Chancellor does not invest in our public services the staffing crisis will only get worse and communities across Britain will continue to suffer.”

Mr Hunt is due to announce his spring Budget later today.

The TUC argues that strong public services are “vital for growth” and that fair pay in the sector should be a priority. 

“The fastest way to get public-sector productivity rising is to pay people fairly and invest in the equipment and technology they need to do their jobs,” Mr Nowak said.

“Jeremy Hunt must act in the national interest and provide the funding local services desperately need.”

The TUC says that the recruitment crisis that is plaguing public services has been exacerbated by years of “brutal” real-terms pay cuts.

An analysis by the TUC has found that 2022-23 was the worst two-year period for public servant pay since records began, with average salaries falling by 7 per cent in real terms.

It estimates that median pay across the public realm is now £2,200 a year lower in real terms than in 2010. 

A fifth of public-sector workers have had to take on additional debt to cope with the cost of living, while one in 10 have used a food bank.

The TUC warned that there could be a “mass exodus” of key workers.

In a poll of 1,000 public-sector workers, it found 38 per cent have already taken steps to leave their profession to get a job in another field, or are actively considering it.

According to the analysis, around 2.2 million public-sector workers are seriously thinking about quitting their jobs for good.

Unison general secretary Christina McAnea, who chairs the TUC’s public services liaison group, said: “Across health, education, local government, police forces and social care, workers feel guilty they can’t do more to help those needing help and support because services are so stretched.

“Everything feels broken and no longer functioning as it should. 

“No wonder so many key workers are leaving their jobs.

“The public wants good, properly resourced, well-staffed essential services.

“Yet more cuts will simply push services to the point of collapse.”

Mr Hunt hinted this week at tax cuts after saying that he wanted to move towards a “lower-tax economy,” during an interview with the BBC’s Sunday with Laura Kuenssberg programme.

“When we look around the world, the economies that are growing fastest, whether it’s North America or Asia, tend to be the ones with lower taxes,” he said.

The Times has suggested that Mr Hunt could cut 2 percentage points off National Insurance.

Citing Treasury insiders, the Financial Times said that Mr Hunt is considering slashing billions of pounds from public spending to fund pre-election tax cuts, with the Chancellor looking at “further spending restraint” after 2025.

An analysis by the Institute for Fiscal Studies has found that the health budget is due to go from £168.2bn in 2023-24 to £166.2bn in real terms in 2024-25, after adjustment for inflation.

It warned that the cuts, which are worth £2bn, would be the largest reduction since the 1970s.

Mr Nowak called Mr Hunt’s promises “farcical,” saying: “This is desperate spin from a government that has manifestly failed on growth, living standards and public services.”

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