[IER] Sunak breaks austerity promise as "astonishing" lack of govt economic planning revealed

[Sarah Glenister]

                            News brief - 24/07/20                                                                             View this email in your browser
                        


                            Sunak breaks austerity promise as "astonishing" lack of govt economic planning revealed



        

                            Just weeks after Boris Johnson promised there would be no return to austerity in his government's efforts to tackle the Coronavirus recession, Chancellor Rishi Sunak has privately forewarned ministers of his plans for pay restraint.


Sunak's announcement of "above inflation" pay rises for some public sector workers this week has been criticised as a "cynical ploy" by TUC General Secretary, Frances O'Grady, as the government has failed to publicly admit to what will happen next.


Leaked communications to government departments have revealed that the Chancellor is plotting a new wave of austerity after this one-off year of public sector pay increases. Further, the wage rise will affect fewer than one in five public sector workers, and even those who benefit from a salary hike will not be paid enough to make up for the years of money lost to the last tranche of austerity.


Elsewhere, MPs are "astonished" at the government's lack of economic planning, with the Public Accounts Committee reporting that only the health impacts of the Coronavirus pandemic had been considered until days before the national lockdown was announced. Although ministers knew schools would be closed, they did not consider how education would continue, and local authorities were given unclear and ineffective advice and support despite being tasked with the frontline response to the virus.


This haphazard response has led to widening regional inequalities, expected to hit young workers hardest. Meanwhile, women are already beginning to feel the brunt of the downturn.


Against this backdrop, the IER has published its latest policy paper - Reconstruction after the crisis: repaying the nation's debt to our workers - which has been submitted to the Labour Party's National Policy Forum. Containing 41 recommendations for a fair economic recovery that does not disproportionately burden the poorest and most vulnerable, the proposals focus on democratising the economy by giving workers a voice through a Minister for Labour and the reinstatement of sectoral collective bargaining.
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                    IER experts submit fair recovery plan to Labour Party policy forum
IER experts have submitted 41 recommendations to transform the world of work.
                    Read the full report



                    MPs “astonished” by govt’s lack of economic planning, as inequality gaps widen
Regional inequalities are expected to grow as a result of the Coronavirus pandemic, with young people the hardest hit.
                    Read the full report



                    Women told to dress ‘sexy’ and sacked for being pregnant during lockdown
Sexist attitudes are being exposed by employer's attitudes during the pandemic.
                    Read the full report



                    RMT warns govt laying roots for underground privatisation
The rail union is suspicious of a government review that could allow for future privatisation.
                    Read the full report



                    Chancellor announces austerity in same week as public sector pay increase
Despite warnings from think tanks and economists, Chancellor Rishi Sunak has told the public sector to brace for austerity.
                    Read the full reportIER and Covid-19

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