Unite union boss Sharon Graham says Labour should ‘give Britain a break’ and borrow more to help ‘hurting’ workers
Union boss Sharon Graham has said she does not agree with Labour’s fiscal rules and the party should borrow more to invest.
Speaking to Sky News’ Sunday Morning With Trevor Phillips in an interview that will be broadcast in full tomorrow, the Unite general secretary said other countries with growing economies have a larger debt-to-GDP ratio than the UK, “so there is wiggle room”.
Rachel Reeves, the shadow chancellor, has promised to retain the Tories’ commitment that debt as a proportion of GDP must be on track to fall in five years if Labour win the election on 4 July.
She has ruled out borrowing to fund day-to-day spending, saying her focus will be on reforms to grow the economy.
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But Ms Graham said: “I don’t agree with Rachel Reeves in terms of what has been said about the plans on growth.
“If you look at other countries – in France, their debt to GDP is 112%. In America, where the economy’s growing, it’s 130% debt to GDP. Ours is around about 99%. We have wiggle room. Give Britain a break.”
The union leader said that workers “are literally hurting beyond anything that you could comprehend” due to the cost of living crisis.
She added: “We need the straitjacket off a little bit, get some wiggle room there.
“Borrowing to invest is not the same as other borrowing. It’s borrowing to invest.”
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Reeves: ‘No plans’ for Labour tax increases beyond manifesto
Unite is Labour’s largest union donor but it has refused to endorse the party’s general election manifesto.
Ms Graham has been an outspoken critic of Sir Keir Starmer in the past, previously warning him not to “limp into Number 10” and calling on him to be bolder with his pledges, by nationalising energy, for example.
There has also been a row about his plans to phase out oil and gas licenses in the transition to clean energy, which Unite has called a “ban without a plan” and said threatens job losses.
And more recently Unite accused Labour of watering down its package of workers’ rights, saying the plans had “more holes than Swiss cheese”.
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Ms Graham’s concerns echo those of thinktanks which have said public services need far more investment than what any of the major parties have pledged during the election campaign.
Sir Keir has rejected that argument, insisting there will be no return to austerity despite his party’s commitment to “iron discipline” with the country’s finances.
He has previously defended his U-turn on big spending commitments, like nationalising utilities, by saying the policy became too expensive after the Tories damaged the economy.
In response to other criticisms from Ms Graham, he has insisted he is “not turning off the taps” on oil and gas while arguing his package of workers’ rights will boost wages and raise living standards.
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With less than two weeks to go until polling day, Labour is projected to win a historic landslide after 14 years out of power.
Ms Graham has said she still wants to see a Labour government in Number 10 but thinks the party’s proposals for the country don’t go far enough “after years of Tory neglect”.
The Labour Party has been contacted for comment.
You can watch the full interview with Sharon Graham on Sunday Morning With Trevor Phillips from 8.30am tomorrow morning on Sky News.
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Sir Keir Starmer continues to face the threat of a major rebellion during a key vote on welfare reforms later – despite making last-minute concessions to disgruntled Labour MPs.
Work and Pensions Secretary Liz Kendall has confirmed that all existing claimants of the personal independence payment (PIP), the main disability benefit, will be protected from changes to eligibility.
The combined value of the standard Universal Credit allowance and the health top-up will rise “at least in line with inflation” every year of this parliament.
And an additional £300m for employment support for sick and disabled people in 2026 has been announced, which will rise every year after.
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Welfare cuts ‘needed to be made’
Ms Kendall has also promised that a consultation into PIP – “co-produced” with disabled people – will be published next autumn.
She said the U-turn on welfare cuts will cost taxpayers about £2.5bn by 2030 – less than half the £4.8bn the government had expected to save with its initial proposals.
Modelling by Ms Kendall’s own department, released yesterday, suggested the proposals would push 150,000 more people into poverty by 2030, down from the 250,000 estimated under the original plan.
But after announcing the U-turns, Labour MPs were still publicly saying they could not back the plans as they do not go far enough to allay their concerns.
Disabilities minister Stephen Timms would not say he was “confident” the proposals would pass the Commons when asked on Sky News’ Politics Hub with Sophy Ridge.
“We’ve got a very strong package, I certainly hope it passes,” he replied.
Read more: What are the concessions to the welfare reform bill?
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‘Disabled people thrown under the bus’
A total of 86 charities united yesterday to call on MPs to reject the reforms, saying they will harm disabled people and calling it “a political choice”.
The likes of Oxfam, Child Action Poverty Group, Mind and Shelter said the bill has been brought to a vote without consulting disabled people and without any assessment “of its impact on health and employment outcomes”.
When asked to name “a single” disability organisation in favour of the reforms, Ms Kendall declined to do so.
Several Labour MPs indicated they would still vote against the changes, leaving the government in the dark over how big a rebellion it still may face.
Ms Kendall tried to allay their fears, telling MPs: “I believe we have a fair package, a package that protects existing claimants because they’ve come to rely on that support.”
Richard Burgon presented a petition to parliament yesterday evening against the cuts, signed by more than 77,000 people.
Several Labour MPs questioned why the vote was going ahead before the review into PIP is published – including Rachael Maskell, who said she could not “countenance sick and disabled people being denied support” and added: “It is a matter of conscience.”
Connor Naismith said the concessions “undoubtedly improve efforts to secure welfare reform which is fair”, but added: “Unfortunately, I do not believe these concessions yet go far enough.”
Labour rebel Nadia Whittome said the government was ‘ignoring’ disabled people
Nadia Whittome accused the government of “ignoring” disabled people and urged ministers to go “back to the drawing board”.
Ian Byrne told the Commons he will vote against the “cruel cuts” to disability benefits because the “so-called concessions go nowhere near far enough”.
The vote will take place this evening, with coverage on Sky News’ Politics Hub live blog and on TV.
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