Unite warning on cuts
19 October 2010
The coalition's threat to slash public spending by between 25
and 40 percent will destroy nearly as many private sector jobs as
public sector ones, Unite, the country's largest union will warn at
the national demonstration against the cuts today (Tuesday 19
October).
Ahead of tomorrow's comprehensive spending review - set to
unveil the heaviest cuts in public investment in generations - Tony
Woodley, Unite joint general secretary, will tell the rally of
workers that for every four public sector jobs forced by
government, three more will follow in the private sector: "The
coalition has no brief for the devastation it is about to unleash
on this country. Cuts on this scale make no sense. Business
knows it needs the public sector to fill the growth gap created by
a struggling private sector. And the people of this country,
who most need their public services to help them during tough
times, did not vote for the dismantling of their schools, hospitals
and communities.
"Where is George Osborne's plan B which will see the government
grow the economy through investment, implement pain-free taxes on
the banks and pursue the real `muggers', the super rich who avoid
their tax obligations to this country?
"For every four jobs lost in public services, three more will
follow in private industries. This is not a price worth
paying.
"Make no mistake, if this government forces through its brutal
programme, Britain will not become a stronger economy - it will
become a bleaker and more divided country."
Using research produced for the Scottish government (see note
below), Unite has found that for every 1,000 public administration
jobs cut a further 700 - at least - will follow in the private
sector.
Unite also believes the true extent of the cuts will be to take
a colossal £145 billion from the economy. This is based on
the government's statement in the June budget that it will cut
total managed expenditure by 7.7 per cent of gross domestic product
(GDP) over six years. This amounts to cuts of £108 billion, but as
total managed expenditure also includes debt interest payments,
this adds another £36.6 billion over the six years. That
means the spending on services, benefits and jobs will be cut in
real terms by £145 billion.
Unite has been pressing for the government to abandon a
cuts-only policy and focus instead on growing the economy through
investment. The union is releasing a
briefing paper, Dealing with the deficit -
there is a better way, which shows that:
Coalition cuts are ideological, not
economic
- Germany, France and Japan have all got higher net debt than the
UK.
- In April 2010, the IMF stated the UK has the lowest government
debt as a proportion of GDP in the G7.
Hundreds of thousands of jobs will go
- The Treasury predicts the cuts will lead to at least 500,000
public sector jobs losses and between 600,000 and 700,000 private
sector jobs in the next four years.
- For every four public sector jobs cuts, three more will follow
in the private sector.
- Unemployment is expected to surge above 10 oer cent in half of
our regions by 2015.
- Public sector spending cuts could reduce private sector gross
output by around £46 billion per annum by 2014/15.
We are not all in this together
- The cuts will make the poorest 10 per cent of households will
be worse off by £1,514 a year - or 21.7 per cent of household
income.
- The richest 10 per cent of households will lose just 3.6 per
cent of their annual household income.
- With 65 per cent of the overall public sector workforce female,
women will be hit harder by job cuts and the two year pay freeze
(2011 - 2013).
- Female unemployment now stands at one million; over 200,000
18-24 year olds have been out of work for over one year.
There is a better way
- While the coalition cuts support to families the banks are
allowed to defer paying £19 billion in corporation
taxes.
- Wealthy companies and individuals cost the country £25 billion
a year in tax avoidance.
- £4.7 billion can be raised by introducing a 50 per cent tax
rate on incomes over £100,000.
- A tax on the banks, derivative trading and major hedge funds of
just 5p for every £1,000 transacted could generate $400 billion
globally; in the UK tens of billions of pounds could be
generated.
- For every £1 billion spent on health, education and social work
there is an increase in demand in the economy worth £1.854
billion.
Where is plan B?
- The government has no strategy for growing jobs. It has denied
a loan to Sheffield Forgemasters, is ending the Future Jobs Fund
and scrapping the Regional Development Agencies.
- In July 2010, the markets reported that UK deficit had
narrowed, reducing government's borrowing requirements and
prompting many to ask, why cut so hard and so deeply?
Tony Woodley is to address the TUC-coordinated rally in defence of
the public services, which will be held at Westminster Central Hall
from 12.30 on Tuesday 19th, before leading Unite members to lobby
MPs for their help in resisting the slash in spending.
Hundreds of Unite members will be attending the rally from across
the UK.
ENDS
For further information, please call Unite's head of press and
campaigns, Pauline Doyle on 07976 832 861
Notes:
Email to a friend
