Reaction to Pre-Budget Report

Unite's joint general secretary Tony Woodley commenting on the Chancellor's statement said: "The tax on bankers is welcome and must now mark the beginnings of a fairer tax regime. The recession is not over even if the bankers that caused the crisis act like it is. The chancellor must resist scaremongering from the city over 'brain drain' , with unemployment set to rise, this is a time to put jobs and families first. Public sector workers should not have to pay the price for the economic crisis caused by casino capitalism. We oppose a cap on public sector pay but the Tories would freeze pay now and make brutal cuts to public services.

"When it comes to a choice at the next election voters will reflect on who acted to save jobs, protect our services and build a fairer future for Britain. Labour must stick to its guns and defend what is just and right for the vast majority, not the excessively privileged few".

Gail Cartmail, Assiiant General Secretary for the Public Sector reacted angrily to the freeze on public sector pay: "We know the Treasury and Number 10 are targeting high earners in the public sector but we urgently need to talk to the Treasury about an across the board pay cap. A pay cap would hit the lowest paid hardest. One per cent for the lower paid is a pittance, but the highest earners would get significantly more cash.

"The proposed cap also compromises the independent pay review bodies which were set up to take the politics out of public sector pay. Labour's implementation of the review bodies has been a success and to ride roughshod over them is a step in the wrong direction.

"We know that the Tories' plans for our public services are far worse than Labour's. The Tories will slash our public sector and we could see up to a million job cuts. This is precisely why Labour must make a stand for our public sector workers and make the wealthy pay their fair share rather than place the burden on low paid public servants."

Les Bayliss Workers Uniting Group Candidate for Unite General Secretary welcomed the one-off "super-tax" on banker's bonuses: "It's long overdue. It's good that the Goverment has refused to be blackmailed by the City and it's good news for everyone who campaigned for the tax and against the bankers "business as usual" attitude.

"We shouldn't forget it is ordinary working families and our members who are paying the price for their recklessness and saving the banks and financial institutions from crashing in the long run".

"Thousands of Unite finance sector workers, those in manufacturing and the public servcies, and young people who can't find a job are now being asked to pay the price".

"The decision to impose a 1% cap on public sector pay is unacceptable. Once again working families, especially those employed in the public sector are being asked to pay the price. They are being asked to share an unfair burden."