Labour’s biggest donor has launched a scathing attack on the party, accusing it of betraying the trust of working people. Sharon Graham, the general secretary of Unite, accused Keir Starmer’s Government of breaking promises after watering down proposed changes on workers’ rights as part of the Employment Rights Bill (ERB).
Ms Graham warned that her members had noticed the “shameful stealth tax” represented by the freezing of income tax thresholds. The Unite leader, who has previously been outspoken on the performance of Angela Rayner and has threatened to remove funding, accused the party of pandering to the far-right. She wrote in the Telegraph: “The Budget was the defining moment for Labour. The Chancellor’s stealth tax increase has hit ordinary workers such as health workers, engineers and tanker drivers while city bankers and billionaires have been left unscathed.
“The stealth tax is a tax on workers pure and simple. A promise broken to workers.”
Following the budget, the Government announced that proposed plans to provide workers with the right to sue for unfair dismissal on day one of their employment would be amended to a qualifying period of two years to six months, in line with a deal agreed by some unions and industry groups.
Bridget Phillipson defended the “pragmatic” decision, arguing that the decision ensures that the “wider benefits” in Labour’s employment rights bill could be delivered on time.
She told the BBC: “Sometimes in life, you have to be pragmatic to secure wider benefits”.
Ms Graham hit out at the decision, accusing the Government of breaking another promise to the public.
She said: “Workers were promised stronger rights, particularly the outright ban on fire and rehire, an end to zero hours contracts and day one right.
“Those promises which were campaigned on, have failed to be delivered. Broken. Workers have been left unable to trust Labour.”
She added: “The broken promise on workers’ paying the price through higher taxes and the watering down of the ERB undoubtedly has left workers scratching their heads and asking what the hell is Labour doing? Are they Labour at all?
“These latest decisions form part of a long list, which began with the attack on pensioner winter fuel payments, continued through proposed disability cuts, now stealth taxes and crucially underpinned by Labour’s failure to tackle the cost of living crisis.”
