Labour must “take off” the UK’s economic “straitjacket” and borrow to invest if it wins the general election, the chief of trade union Unite has said.
Sharon Graham, the first female general secretary of Britain’s biggest trade union, told Sky’s Sunday Morning with Trevor Phillips programme that she disagreed with shadow Chancellor Rachel Reeves over Labour’s plans for growth, calling for whoever wins on 4 July to “give Britain a break”.
“Whilst we all want growth – I want growth, I think everybody would want growth – we are going to have to borrow to invest,” the Unite chief said, in an interview which aired in full on Sky on Sunday morning.
“If you look at other countries in France, their debt to GDP is 112 per cent. In America, where the economy’s growing, it’s 130 per cent debt to GDP.
“Ours is around about 99 per cent. We have a wiggle room. Give Britain a break. Give us a break.”
Ms Graham’s comments come amid a row between Labour and the Conservatives over each party’s taxation and spending pledges.
The Tories claim that Labour would impose unspecified tax hikes if elected, while Sir Keir Starmer’s party has accused the Conservatives of pledging unfunded tax cuts.
The Labour manifesto includes plans to raise £8.6bn in new tax revenue, which would be largely be achieved by closing the non-dom loophole, charging private schools VAT and levying a windfall tax on oil and gas companies.
The party has ruled out raising the rates of income tax, national insurance and VAT.
Labour also said it would give more power to the Office for Budget Responsibility (OBR) and implement “tough fiscal rules” to ensure economic stability, with the goal of the UK achieving the highest growth in the G7 through what Ms Reeves called “securonomics” – prioritising economic strength and resilience.
The party also said it would establish a national wealth fund to “support growth” and deliver private and public investment, including £2.5bn to rebuild the steel industry, £1.8bn to upgrade ports and build supply chains, and £1.5bn to the automotive industry.
But all these pledges come amid warnings that the next government will need to fill a shortfall of up to £33bn in public finances unless prepared to bring in a round of severe austerity measures.
In the interview, Ms Graham, 55, said: “These people that are out there in communities, and the workers, they are literally hurting beyond anything that you could comprehend.
“What we need is to take the straitjacket off, get some wiggle room there.
“Borrowing to invest is not the same as other borrowing. It’s borrowing to invest.”
The Unite chief has also previously criticised Labour over its planned pledges on workers’ rights last month.
In its manifesto, Labour confirmed it plans to ban “exploitative” zero hours contracts, end fire and rehire and introduce basic rights, from day one on the job, to parental leave, sick pay and protection from unfair dismissal.
It adds that it wants to close the gender pay gap, make work more family friendly, and tackle sexual harassment.
But sources on the Labour left have said there was disappointment that the party’s much-anticipated manifesto had not been more radical, adding that the lack of public spending increases created an “unacceptable” threat of austerity.
Trevor Phillips’ interview with Sharon Graham airs in full on Sunday Morning with Trevor Phillips at 8.30am on Sky.
Election 2024
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