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 today, 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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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 on Sky News.
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Politics
Sir Keir Starmer set for Donald Trump trade talks as PM walks diplomatic line between EU allies and US on Gaza
Gaza and transatlantic trade are set to dominate talks between Donald Trump and Sir Keir Starmer when the pair meet in Scotland on Monday.
Downing Street said the prime minister would discuss “what more can be done to secure the ceasefire [in the Middle East] urgently”, during the meeting at the president’s Turnberry golf course in Ayrshire.
Talks in Qatar over a ceasefire ended on Thursday after the US and Israel withdrew their negotiating teams.
Mr Trump blamed Hamas for the collapse of negotiations as he left the US for Scotland, saying the militant group “didn’t want to make a deal… they want to die”.
Sir Keir has tried to forge close personal ties with the president, frequently praising his actions on the world stage despite clear foreign policy differences between the US and UK.
The approach seemed to pay off in May when Mr Trump announced the agreement of a trade deal with the UK that would see several tariffs lowered.
The two leaders are expected to discuss this agreement when they meet, with the prime minister likely to press the president for a lowering of outstanding tariffs on imports such as steel.
Prior to the visit, the White House said the talks would allow them to “refine the historic US-UK trade deal”.
Extracting promises from the president on the Middle East may be harder though.
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Despite some reports that Mr Trump is growing frustrated with Israel, there is a clear difference in tone between the US and its Western allies.
As he did over the Ukraine war, Sir Keir will have to walk a diplomatic line between the UK’s European allies and the White House.
On Thursday, French President Emmanuel Macron announced his country would formally recognise a Palestinian state in September, the first member of the G7 to do so.
That move was dismissed by Mr Trump, who said it “doesn’t carry any weight”.
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The UK, French and German leaders spoke over the weekend and agreed to work together on the “next phase” in Gaza that would see transitional governance and security arrangements put in place, alongside the large-scale delivery of aid.
Under pressure from members of his own party and cabinet to follow France and signal formal recognition of Palestine, Sir Keir has gradually become more critical of Israel in recent months.
On Friday, the prime minister said “the starvation and denial of humanitarian aid to the Palestinian people, the increasing violence from extremist settler groups, and Israel’s disproportionate military escalation in Gaza are all indefensible”.
Government sources say UK recognition is a matter of “when, not if”, however, it’s thought Downing Street wants to ensure any announcement is made at a time when it can have the greatest diplomatic impact.
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Cabinet ministers will be convened in the coming days, during the summer recess, to discuss the situation in Gaza.
The UK has also been working with Jordan to air drop supplies, after Israel said it would allow foreign countries to provide aid to the territory.
President Trump’s trip to Scotland comes ahead of his second state visit to the UK in September.
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Downing Street says Ukraine will also likely be discussed in the meeting with both men reflecting on what can be done to force Russia back to the negotiating table.
After the meeting at Turnberry, the prime minister will travel with the president to Aberdeen for a private engagement.
Mr Trump is also expected to meet Scottish First Minister John Swinney while in the country.
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