Sir Keir Starmer’s union paymasters have warned him not to offer “more austerity”.
The Prime Minister was directly challenged over the decision not to scrap the two-child benefit cap and faced disquiet over hints at future pay restraint during his speech at the Trades Union Congress annual conference.
He was the first prime minister to address the event since Gordon Brown.
In his speech in Brighton on Tuesday, which was interrupted by a heckle of “tax the rich”, he told trade unionists there were more “tough decisions” to come and that “pay will inevitably be shaped by that”.
He has faced union demands to commit to full pay restoration, with a series of bumper wage rises to make up for years of below-inflation deals.
Keir Starmer speaks at the Trades Union Congress annual conference (Image: Getty)
But Sir Keir told the TUC: “This Government will not risk its mandate for economic stability, under any circumstances.”
His appearance came while he was under fire from Labour MPs, unions and campaigners over the decision to means-test the winter fuel payment, with a House of Commons vote just hours after his TUC speech.
Fran Heathcote, general secretary of the Public and Commercial Services Union, 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.
“Thousands of the Government’s own workers earn just above the minimum wage and are having to rely on food banks. There will not be a stronger economy without boosting the incomes of working people.
“You cannot solve the problems caused by austerity with more austerity.”
Gary Smith, GMB general secretary, said: “The Government has a huge job on to clean up the mess after 14 years of chaos and misrule from the Conservatives.
“One toxic Tory legacy was the undervaluing of public sector workers. Paying them properly is both the right thing to do and will help get our economy moving.
“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’s Sharon Graham said the UK was better under Labour but warned Sir Keir to do more than “tinkering around the edges”.
“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,” she said.
Sir Keir sought to balance his warnings about the dire state of the public finances with the promise of a new package of workers’ rights.
He said there was a “mood of change” in the business world as he set out his plans for a government that was both “pro-business” and “pro-worker”.
