Tuesday 29 November 2011

Autumn Statement

While many of the detailed spending measures in the Chancellor's Autumn Statement don't apply to Scotland, it does impact on overall spending and on reserved issues.

There will be £433m of additional Capital spend although this is spread over four years. The Revenue consequences are unclear.

Other announcements that do impact on UNISON members in Scotland include:

·         Raising the state pension age to 67 by 2026. Further proof you can’t trust this Government on pensions.

·         More public sector job cuts. 710,000 across the UK and that could mean around 70,000 in Scotland

·         A public sector pay cap of 1% for the next two years when inflation is topping 5%. The cumulative effect of 2 yr pay freeze, 2 yr 1% pay cap + pension contributions increase will be a 16.48% pay cut in public sector.

·         Looking at Regional Pay so he can give ungrateful public sector workers in the most deprived regions of England and Scotland a further pay cut.

·         Promised increases in Child Tax Credit abandoned.

·         Creating further job insecurity by undermining employment rights on unfair dismissal, redundancy and TUPE.

·         And if you still have a job you are more likely to die at work when health and safety rules are abandoned.

The UK Government is planning to borrow £billions to keep workers on the dole rather than investing to get people into work and growing the economy. Even those in work will be less willing to spend when they see what’s coming.

For more see Dave Watson's analysis.

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