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Union bosses have put themselves on a collision course with the Government over leaked proposals for a public sector pay freeze to help pay off the crippling economic cost of coronavirus.
Senior police and fire representatives warned ministers against targeting frontline workers as the full impact of the pandemic of UK finances was revealed.
A leaked Treasury document estimated the UK’s deficit could reach £ 337billion this year because of the pandemic, compared to the forecast £ 55billion in March’s Budget.
The paper said measures including income tax hikes, a two-year public sector pay freeze and the end of the triple lock on pensions may be required to fund the debt.
But unions branded any pay freeze a ‘betrayal’ and their members should not share the burden of averting national bankruptcy, despite many private sector workers facing an uncertain future.
From August the furlough scheme for businesses will require contributions from firms, leaving many to make a decision about whether to lay staff off if they are still closed for business.
But Matt Wrack, the Fire Brigades’ Union (FBU general secretary, said his union would ‘fight any attempt to make those who see us through the coronavirus crisis pay for it’.
‘Firefighters have had a real-terms pay cut of around £ 4,000 over the last decade, much like workers across the public sector, I said.
‘Key workers and the public they serve will not accept another attempt to pass the buck from the rich to working people.’
Another said a pay freeze would be like ‘throwing water on a chip pan fire’.
Prospect general secretary Mike Clancy said: ‘Slashing the wages of the public servants who have helped us through this crisis would not only be immoral, it would only make the situation worse, leading to a spiral of cuts and unemployment that will hamstring Britain for a decade. ‘
Matt Wrack, the Fire Brigades’ Union (FBU general secretary, said his union would ‘fight any attempt to make those who see us through the coronavirus crisis pay for it’
Chairman of the Police Federation of England and Wales John Apter (left) called any move ‘morally bankrupt’ and urged the Government to rethink plans to ‘punish workers’. General Secretary of UNISON David Prentis (right) added he was ‘absolutely appalled’ by the reports and branded it ‘disgraceful’
Key workers are pictured preparing to join in the weekly applause for frontline services on Thursday
A Treasury document estimated the UK’s deficit could reach £ 337billion this year because of the pandemic, compared to the forecast £ 55billion in March’s Budget (pictured, the Chancellor today)
John Apter, chairman of the Police Federation of England and Wales, which represents rank and file officers, added: ‘The Chancellor, Rishi Sunak and thousands of others have clapped for our key workers every Thursday.
‘To even consider freezing the pay of our essential public sector workers to help the financial recovery would be morally bankrupt and would be a deep and damaging betrayal.’
It comes as workers who are trying to get to the office have their efforts frustrated by unbending unions who refuse to put on more services and tell their members they have a ‘legal right’ to refuse to return to work.
The nation’s biggest teaching union also told its members not to ‘engage’ with the government’s plan to start reopening schools on June 1.
General Secretary of UNISON David Prentis said: ‘Absolutely appalled by reports that the government are considering another public sector pay freeze.
‘To even contemplate pay freezes for those currently putting their lives on the line is disgraceful, and UNISON will fight these plans every step of the way.
‘NHS workers, care workers and other key workers don’t need their pay freezing – they need proper pay rises, especially after the heroism of recent months. Anything less would be a slap in the face to those we applaud each week. ‘
Royal College of Nursing Chief Executive and General Secretary Dame Donna Kinnair said: ‘This proposal is the exact opposite of what’s expected and deserved and, if pursued, will outrage professionals and public alike.
‘We will make sure no government forgets the professionalism demonstrated by all nursing staff during this pandemic and before it.’
Prospect general secretary Mike Clancy added: ‘Responding to an economic shock on this scale with more austerity and pay cuts for public servants would be like throwing water on a chip pan fire.
‘The challenge the country will face in the next few years will be getting the economy growing again quickly, saving jobs, and keeping wages steady so that demand in the economy doesn’t plummet.
‘Slashing the wages of the public servants who have helped us through this crisis would not only be immoral, it would only make the situation worse, leading to a spiral of cuts and unemployment that will hamstring Britain for a decade.
‘Ministers must ignore these proposals and focus government attention on saving jobs, supporting incomes, and getting the economy firing on all cylinders once it is safe to do so.’
Mr Apter let loose in a series of tweets and called for the government to rethink any idea of a pay freeze
Mr Prentis added: ‘Absolutely appalled by reports that the government are considering another public sector pay freeze’
Meanwhile private sector workers have seen jobs slashed in the thousands during the crisis.
Last month a study estimated the coronavirus lockdown will take more than 6.5million jobs out of the economy.
Institute for Social and Economic Research at the University of Essex said it equated to around a quarter of the UK’s total jobs.
Labor urged Boris Johnson and Mr Sunak to reject public sector spending cuts as a way of paying off the cost of the pandemic.
Shadow chancellor Anneliese Dodds said: ‘A lack of resilience in our public services, caused by 10 years of underfunding, has made it harder to deal with the challenge of coronavirus.
‘After all our public services and key workers have done to save lives during this pandemic, there must be no return to a society where we lack that resilience.
‘Both the Chancellor and the Prime Minister must urgently make a statement rejecting these plans.’
MPs urged the government not to rush to raise taxes and cut services when the impact of the disease could be a ‘one off hit’.
One senior Tory told MailOnline the focus must be on driving the economy, and a massive increase in debt could be sustained as long as the day-to-day budget returns to balance.
‘You don’t pay down the debt, you increase GDP,’ said the MP. ‘In terms of public spending and taxes, don’t make any rush decisions. Get us through the situation, take an analysis, and then take decisions when we have returned to a new normal. ‘
The Treasury document is said to state: ‘To fill a gap this size (in the public finances) through tax revenue risers would be very challenging without breaking the tax lock.
‘To raise fiscally significant amounts, we would either have to increase rates / thresholds in one of the broad-based taxes (IT, NICS, VAT, CT) or reform one of the biggest tax reliefs (e.g. pensions tax).’
In the worst-case scenario, the assessment reportedly warns the deficit could increase to £ 516billion in the current financial year.
Despite the country trying to get back on its feet with the lifting of some locdown restrictions, trade unions have hampered efforts by saying employees legally do not have to return to their workplace.
The Trades Union Congress said existing laws already protect employees in Britain who have a legal right to refuse to work if the risks are ‘serious and imminent’.
The Government has set out guidelines for swathes of the economy to get them back to work
The TUC said employees should initially talk to their colleagues and union if they are worried about safety, and ask their employer to rectify any concerning issues.
Staff can then report persisting problems to the Health and Safety Executive, and may also have the right to leave work depending on the specific circumstances.
The relevant law is section 44 of the Employment Act 1996, while section 100 protects workers from detriment for asserting their right to safety.
School unions are threatening to sabotage Mr Johnson’s plans to reopen schools from June 1, with teachers’ leaders slamming the proposal as’ reckless’.
Nurseries would also be covered in the initial phase and the hope is that all primary school children would return to class by the summer.
Secondary school students who have exams next year will be given time with teachers before the summer holidays but most will not be back until September.
The Prime Minister’s plan also caused alarm in the country’s largest teaching union, with its leader branding it ‘reckless’.
Mary Bousted, joint general secretary of the National Education Union, also called on children to be disinfected at the school gates.
She said: ‘In China, children stand outside the school gates and are sprayed front and back with disinfectant, their shoes are sprayed, they wash their hands with sanitiser, they must take off their mask and replace it with a new one, and their temperature is taken remotely. ‘
Transport Secretary Grant Shapps said he did not recognize the gloomy figures for the economy quoted by the Telegraph.
Transport Secretary Grant Shapps (pictured on Saturday) said he did not recognize the figures quoted by the Telegraph
He told the Today program: ‘It is too soon to get into those figures. I don’t recognize those figures.
‘Time will tell, but the careful management we are going through at the moment is the best way to ensure the economy can recover.’
The Treasury declined to comment on the report, but it is understood the document is one of many put together by different teams to discuss ideas about future policy.
A source said the document ‘does not reflect Government policy’.
The Tories pledged in their manifesto at the general election the party would not raise income tax, VAT or National Insurance and would keep the pensions triple lock.
