TUC: How Labour can govern for working people

The trade union movement will work with Keir Starmer to deliver change

What an extraordinary moment in British politics (writes TUC General Secretary PAUL NOWAK). Labour back in power with a near-record majority. The Conservatives brutally ejected from office. A dozen cabinet members gone. A red wave in Scotland at the SNP’s expense. But while it’s easy to get carried away by the seismic nature of this election – we cannot afford to be distracted. We have a country to fix.

When I congratulated Keir Starmer this morning my message to him was clear. The trade union movement stands ready to work with the new government to repair and rebuild Britain – and to deliver the change working people desperately need. After 14 years of wretched Tory rule and chaos, I am not blind to the size of the task this incoming government faces.

The Conservatives have left behind a trail of destruction for all to see. Stagnant growth and wages. Rising in-work poverty. Broken public services. The charge sheet goes on and on. But despite all of the damage wrought, I am optimistic. After nearly a decade and a half in opposition, Labour can finally begin transforming the country – an urgent and necessary challenge that must be grasped with both hands. So where should we start?

First and foremost, we need to get our economy growing again. Unions and business have been crying out for years for a proper industrial strategy. The Green Prosperity Plan starts us on the road to economic recovery. And it will be a breath of fresh air to work with ministers who are actually serious about protecting and creating good jobs, and boosting skills and productivity.

But securing growth alone is not enough – we also need better living standards. Labour needs to act urgently to make work pay. We currently have over four million people who are trapped in jobs that offer little or no financial security. This is a national disgrace.

The UK’s long experiment with a low-wage, low-rights economy has been terrible for productivity and workers alike. Labour’s New Deal for Working People – delivered in full – will help end the Tories’ race to the bottom on employment standards.

A race to the bottom that has allowed good employers to be undercut by the bad, and scandals like the illegal sacking of 800 seafarers at P&O Ferries go unpunished. Labour’s plans will be a genuine gamechanger. Employment rights from day one. A ban on zero-hours contracts. An end to fire and rehire. New rights for unions to access the workplace. And the scrapping of anti-union legislation.

These are all part of a comprehensive new package of rights that will be good for workers, good for businesses and good for the UK economy. Inevitably there will be some siren voices in the business community who will seek to delay and water down this legislation. But it is vital Labour stays the course and ignores the doomsayers.

All the tired arguments that have been made against improved rights and protections at work echo those used against the minimum wage – now widely acknowledged to be one of the great policy successes of the last 25 years.

The naysayers were wrong then and they are wrong now. It is also vital that immediate work begins on repairing our crumbling public realm. At the heart of the pressures on our schools, hospitals, prisons and social care system is a huge workforce crisis. Across the NHS and social care alone there are nearly 300,000 staffing vacancies and in education the number of teaching vacancies has more than doubled in the past three years.

With morale at rock bottom – after more than a decade of Tory vandalism and neglect – Labour has the chance to signal a new direction of travel. We’ve already seen really encouraging commitments on scrapping tax breaks for private schools to fund new teachers in the state sector, and on closing non-dom loopholes to help bring down waiting lists. It’s no secret though that I want the party to go further and that we explore all funding options for rebuilding our public services.

The TUC has previously called for a national conversation on taxing wealth and I remain convinced that policies like equalising Capital Gains Tax with the taxes paid on earnings could bring in much-needed revenues. People voted in this election because they wanted real change – and Reform’s populist insurgence is a timely warning of what happens when governments fail to act.

And this question of delivery is the crux of the matter. After 14 years of national decline the country has finally got the Labour government it desperately needs. I know how ambitious Keir Starmer and his team are to improve working people’s lives, and the trade union movement wants to work with them.

Of course there will be moments of tension. That comes with being a critical friend. Our job is to speak up for working people and our members and to make sure their voices are heard at the heart of government – even when the message is difficult.

But the prospect of national renewal is real. Decent jobs, strong public services, a brighter, fairer future for all our children. The work will be hard and it starts today – but together we can realise a better future.  

Chancellor Rachel Reeves delivers first address to HM Treasury staff

Chancellor of the Exchequer Rachel Reeves’ speech delivered to HM Treasury staff yesterday (Friday 5 July):

Thanks to all of you for being here. It is such an honour to be here today as the Chancellor of the Exchequer.

I know what a responsibility this brings – to guide our economy through uncertain times;

To restore stability in an age of insecurity;

To build prosperity that draws on the talents of working people.

The central mission of this new Government will be to restore economic growth.

During the election that was the Labour Party’s mission.

It is now our national mission.

And it will be for the Treasury to lead that mission.

Not growth for growth’s sake.

But growth for a purpose.

To make every part of our country better off.

To deliver on this mission, I want this to be the most pro-growth Treasury in our country’s history.

That will mean doing what the Treasury does best – building growth on a rock of economic stability.

But it also means taking on new challenges and new responsibilities.

To fix the foundations.

And to rebuild Britain;

To drive growth not just in a few pockets of our country but in every part of Britain.

To meet the challenges and seize the opportunities of the future – including our energy transition.

That is why this Treasury will play its full part in a new era of industrial strategy;

Working hand-in-glove with business, to make sure Britain is truly open to business once again.

And I know that in an uncertain world, if we can deliver the stability, investment and reform that the Prime Minister and I have set out, then Britain can reap the rewards.

But for families at home – I know that this is about more than just lines on a graph.

It is about tackling the causes of the cost of living crisis and making work pay.

Rebuilding our health service and our schools.

And driving opportunity in every part of Britain.

I will always hold in my minds eye the people across our country whose livelihoods, public services and aspirations will rise or fall based on the decisions we make here.

And I ask you to do the same – whether in Darlington, or Norwich, or in this building.

It is also a huge privilege to be the first ever female Chancellor of the Exchequer.

So every young woman and girl watching this:

Let today show that there should be no ceilings on your ambitions.

Your hopes,

or your dreams.

But there is a deeper responsibility too:

To women whose work is too often undervalued.

Who have borne the brunt of inequality.

And whose lives and interests are too often excluded from economic policymaking.

Together, we are going to change that.

Now, I have been a Member of Parliament for fourteen years now.

And if I’m honest, I’ve spent a lot of those years frustrated.

Talking, not doing.

Responding to constituents’ problems, but not being able to get to the root cause of those problems.

So as far as I’m concerned, there is no time to waste.

I will judge my time in office a success if I know that, at the end of it, there are working-class kids from ordinary backgrounds living richer lives, their horizons expanded, and their potential realised;

If we are leaving to the next generation a country that is more prosperous, with more good jobs paying decent wages, and a country better able to thrive in an uncertain world.

I know that a lot has been asked of you in the last few years – and I know, when the chips are down, staff at the Treasury have risen to the occasion, from furlough to energy price support.

I have often disagreed with the political choices that have been taken in this building.

But I have never been in any doubt about the talent, the dedication and the professionalism that Treasury staff have displayed.

I know too that at times it must have been frustrating for you, working under a weight of uncertainty, changes in direction, and without clarity of political purpose.

As Chancellor, I am determined to change that.

All our plans for government will rely on your hard work.

I’m under no illusion about the scale of the challenges we face.

The difficult choices that we will have to make.

I am not promising you that it will be easy.

There is a long road ahead.

It comes with a great weight of responsibility.

I embrace it.

It will demand hard work.

I am ready for it.

The British people have put their trust in this new government.

They have put their trust in us to run their economy.

And to protect their finances.

And that trust must not be squandered.

We’re a team.

It’s a new start.

So let’s get to work.

Thank you very much.