The No. 10 team is preparing for a possible defeat at the Labour Conference, where a vote will be held to condemn cuts in winter fuel allowances. Major trade unions are lining up to support a motion that would reverse Rachel Reeves’ decision.
Unite and Communication Workers Union (CWU) are leading the charge to have a conference vote and debate this week, to denounce the decision to axe winter fuel allowance from all pensioners except the poorest. Unison and GMB will likely support a motion, if the wording can be agreed. Starmer’s allies will try to move the voting to the final day of the conference.
The vote is non-binding but a display of discontent from unions or delegates could cast a dark shadow over Labour’s first conference as government in 15 years. Starmer will address the unhappiness in the Labour ranks regarding the decision to reduce the payment. He will argue that the government was forced to make this decision due to the current fiscal situation.
Unite has submitted a resolution to condemn the cuts that will likely end up in a revised compromise motion, agreed upon with other unions. This motion is similar to one that was passed by the TUC Conference. The original wording of this motion asks the government to “reverse all cuts made to winter fuel allowance” in the budget for October.
Despite the fact that the majority of Labour delegates are in favour of Starmer, the motion is likely to be passed by the conference floor.
Unite and a number of Labour MPs have expressed dissatisfaction with the decision by the government to reduce the fuel allowance. The cuts would affect a large number of retirees in many major unions.
On Sunday, billboards funded by Unite urging ministers to reverse this cut were unveiled at Liverpool. When the cut was passed in parliament, it caused anger among Labour MPs.
Sharon Graham, Unite’s general secretary, spoke on Sunday Mornings with Trevor Phillips, Sky News. She attacked the “cruel” policy and called for the Prime Minister to abandon it. “I would like him to admit that he made a mistake and reverse this policy. She said that she would like him to also say we won’t be taking this country into austerity number two. “People voted to change. “They need to see changes.”
She said: “The truth is, it was a mistake.” The first thing Labour does to the poorest members of our society is take their winter fuel allowance away. They leave the wealthiest members of our society untouched.
In an article in the Observer, Unite’s leader wrote that the first steps taken by the government were crucial and that “absolutely needed” were reversals. She wrote that “dying early in a ditch for policies people dislike is not only stupid politics, but can also set public mood”.
Matt Wrack said that the Fire Brigades Union’s general secretary, Matt Wrack, called the cuts “politically inept”, “out-of-touch” and he said that the government will be held responsible for the deaths of people over the winter. He said at a fringe conference that “ordinary voters are baffled” by the decision. In the first weeks of the new government, some worrying trends have emerged.
Starmer met with union general secretaries on Saturday in Liverpool, before the opening of the conference. He said that the Conservative government had left a £22bn gap in the public finances.
Graham had accused the chancellor earlier of focusing too much on fiscal conservatism at the expense economic reform and growth. She said in an interview published by the House magazine as the Liverpool conference was getting underway: “You don’t just want a Labour Government to come in, you also want them to be visionary. You want them come in with vision. “I am concerned that Treasury has played a part in stopping certain visions and investments. You’d have no choice but to draw that conclusion from what you see.
Graham, who is critical of Starmer, Reeves and other ministers, has renewed her call to loosen fiscal rules to allow them to borrow more money to invest in public services and infrastructure. She made these remarks as Reeves prepares his first budget in October, and after Andy Burnham the mayor of Greater Manchester said that the Treasury must change its way of thinking to achieve the goal of promoting economic growth.
Burnham stated in an Interview with the Financial Times that “there are many ‘growth tests,’ not least those on rail infrastructure. We will soon find out whether Treasury can transform itself into a growth department”. He said that Treasury “needed a better understanding that growth comes from planting seeds and giving hope, not saying no to all”.
Reeves has promised to lead Britain’s “most pro-growth” Treasury, but Downing Street says that the October budget will include some difficult decisions. Tax increases are expected.
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