The Chancellor’s Autumn Statement was billed as a turning point—a moment to reward work, ease the burden on households, and chart a course toward growth. But for millions of workers across the UK, the reality is more sobering. Behind the headlines of tax cuts and wage rises lies a fiscal strategy that continues to squeeze the very people who keep the country running.
The Tax Trap: A Freeze That Burns
The most significant move—cutting the main rate of National Insurance from 12% to 10%—was trumpeted as a tax cut for working people. But this gesture is dwarfed by the ongoing freeze on income tax thresholds, which the government has extended until 2028. This stealth tax, known as “fiscal drag,” means that as wages rise with inflation, more workers are pulled into higher tax bands.
The Office for Budget Responsibility estimates that the threshold freeze will raise £44.6 billion over six years.
A worker earning £35,000 will pay around £600 more in tax by 2028 than they would have if thresholds had risen with inflation.
Over 4 million more people are expected to be dragged into paying income tax or higher-rate tax by the end of the freeze.
Solidarity’s position is clear: this is not a tax cut—it is a redistribution of burden from capital to labour, from wealth to wages. Our members are being asked to fund the state while corporations enjoy record profits and shareholder payouts.
A Welcome Rise in the Minimum Wage—But Not a Living Wage
There is, however, one area where the government deserves cautious praise. From April, the National Living Wage will rise to £12.00 an hour, up from £10.42—a 15% increase. For 21- and 22-year-olds, who were previously excluded from the full rate, this marks a long-overdue correction. The government estimates that 2.7 million workers will benefit.
In practical terms:
A full-time worker on the new minimum wage will earn £1,800 more per year.
For a 35-hour week, this equates to a gross annual income of £21,840.
This is a meaningful uplift, especially in sectors like care, hospitality, and retail, where low pay has long been entrenched. But it still falls short of the Real Living Wage, which the Living Wage Foundation calculates at £12.00 across the UK and £13.15 in London—figures based on the actual cost of living.
Solidarity welcomes the increase but urges vigilance. Without robust enforcement, rogue employers will continue to underpay staff. And without parallel investment in housing, transport, and childcare, even £12 an hour will not deliver genuine security.
The Wider Labour Movement Responds
Across the trade union movement, the response to the Budget has been scathing. Sharon Graham, General Secretary of Unite, dismissed the Chancellor’s statement as “a cynical attempt to buy votes with one hand while picking workers’ pockets with the other.” She pointed to the lack of investment in public services and the continued erosion of real wages across the public sector.
Paul Nowak, General Secretary of the TUC, was equally forthright: “This Budget does nothing to fix the cost-of-living crisis. The Chancellor is giving with one hand and taking far more with the other. Working people will still be worse off at the next election than they were at the last.”
Gary Smith of the GMB highlighted the regional disparities: “This Budget does nothing for the care workers in Glasgow, the refuse collectors in Newcastle, or the NHS porters in Cardiff. It’s a Budget for the boardroom, not the break room.”
These critiques reflect a shared frustration: that the government continues to prioritise headline-grabbing tax tweaks over the structural investment needed to rebuild public services, tackle inequality, and deliver a fairer economy.
Scotland’s Workers: Caught in the Crossfire
For workers in Scotland, the Budget’s contradictions are especially stark. While the minimum wage rise will offer some relief, the tax freeze will hit hard. Scotland’s devolved income tax system already imposes higher rates on middle earners, and the UK-wide threshold freeze compounds this burden.
A Scottish worker earning £30,000 will pay around £1,500 more in income tax and National Insurance than someone on the same salary in England.
Public sector workers in Scotland, already facing pay restraint, will see little benefit from the Chancellor’s headline measures.
Solidarity calls for a coordinated response from Holyrood and Westminster to ensure that wage gains are not clawed back through stealth taxation. We also urge the Scottish Government to match the minimum wage uplift across all public sector contracts and to accelerate the rollout of collective bargaining in social care.
A Budget for Whom?
The Autumn Statement reveals a government more concerned with optics than outcomes. The Chancellor’s tax cut may dominate the headlines, but the underlying reality is one of continued austerity by stealth. Public services remain underfunded, local authorities face bankruptcy, and the social safety net is threadbare.
Meanwhile, the wealthiest continue to benefit from capital gains tax breaks, non-dom status, and corporate loopholes. The burden of funding the state has shifted decisively onto the shoulders of working people.
Solidarity stands with our fellow unions in demanding a new economic settlement—one that prioritises public investment, fair taxation, and decent work. We will continue to fight for a future where wages rise with dignity, not just inflation, and where the fruits of growth are shared by all, not hoarded by the few.
Welcome to Union News, your guide to what’s happening in the UK trade union and labour movement in the UK. Writing is by Pat Harrington and music is by Tim Bragg. In this edition: reports from the Scottish TUC conference, Parcelforce Drivers Take Royal Mail to Court, New Campaign Video says NHS staff are ‘Sicker than the patients’ and finally, Filthy Rich: Water privatisation has proved a disaster.
Scottish trade unions oppose privatizations in the healthcare and social care sectors
During the initial session of the annual Scottish Trades Union Congress (STUC), delegates voiced strong support for defending Scotland’s NHS and criticized the SNP-Green Scottish government’s longstanding plans for a national care service (NCS).
Audrey McCabe from Aberdeenshire Unison strongly criticized the NCS proposal, describing it as more of a public relations statement than a plan for improved care.
Unison has consistently raised concerns about the NCS proposals, arguing that while they suggest a publicly owned and accountable organization akin to the NHS, they would actually result in much of the care sector being controlled by the voluntary sector and private companies.
Key points of contention include the lack of national sectoral bargaining, reduced local democratic oversight, and the potential side-lining of council social work departments as primary care providers.
Despite assurances from the Scottish government that the legislation would be amended, unions were dismayed to find unchanged wording in the Bill after its first reading in Holyrood.
Concerns about increasing privatization extended beyond social care, with delegates supporting a motion by the North Lanarkshire TUC highlighting what they termed as “backdoor privatization” of Scotland’s NHS.
The motion called for the STUC to build on previous successes in advocating for progressive tax measures to generate additional funds for public services. It also proposed conducting research to expose instances of backdoor privatization within the NHS in Scotland.
Drew Gilchrist of the North Lanarkshire TUC, himself an NHS worker, stressed the importance of such research in mobilizing a campaign to stop and reverse privatization while advocating for increased investment in services and the workforce.
Gilchrist cautioned that Scotland should not rely on the notion that its healthcare system is superior to that of England, urging action to counter privatization trends.
Parcelforce Drivers Take Royal Mail to Court
Parcelforce delivery drivers, who are members of the IWGB union, are taking legal action against Royal Mail, alleging that they have been unfairly denied fundamental rights. These drivers argue that they have been misclassified in their employment status and deprived of basic entitlements. The lawsuit, which could involve thousands of Parcelforce drivers across the UK, seeks to compel Royal Mail to compensate them for potential shortfalls in their pay, which could amount to millions.
Previously categorized as self-employed ‘owner drivers,’ many Parcelforce drivers were denied rights such as the National Living Wage and holiday pay. Leigh Day, the legal firm representing the drivers, contends that they should be classified as ‘workers,’ affording them greater rights and potential compensation for past discrepancies in pay.
Concerns were initially raised by three drivers who sought assistance from their union, the Independent Workers of Great Britain (IWGB). With support from the IWGB and legal representation from Leigh Day, these drivers brought claims to the Employment Tribunal. Recognizing the broader implications of these issues, Leigh Day expanded the case into a group claim.
This legal challenge against Royal Mail follows a significant precedent set in a previous case involving Uber drivers, wherein the Supreme Court ruled in favour of classifying them as workers rather than self-employed contractors. This landmark decision laid the groundwork for similar disputes across the gig economy, offering hope to Parcelforce drivers seeking justice.
Marc Francis, a former Parcelforce delivery driver, recounts his experience of working without rights or protections, emphasizing the need for justice for himself and his fellow drivers. The IWGB echoes these sentiments, condemning Royal Mail’s alleged exploitation of its workers and urging affected drivers to join the claim for rightful compensation.
Liana Wood, a solicitor at Leigh Day, emphasizes the importance of recognizing Parcelforce drivers as entitled to workers’ rights, including holiday pay and the national minimum wage. With deteriorating working conditions and decreasing take-home pay, thousands of owner drivers are believed to be eligible to participate in the claim for fair treatment.
STUC Congress Grapples with Cuts: Calls for No-Cuts Budgets
At the STUC Congress in Dundee this month, discussions were dominated by the impact of cuts across Scottish councils, leading to significant job losses over the past 15 years. While calls to support no-cuts budgets were made, they did not gain widespread backing. Clydebank TUC proposed backing such budgets as a strategy to challenge austerity policies, but the general council raised concerns about legality and called for a more practical approach.
Despite this, trades union councils from North Lanarkshire, Fife, and Dundee supported Clydebank’s motion with fervent speeches defending council workers and services. Fife’s Tam Kirby criticized the general council’s cautious approach, arguing for a more aggressive stance against cuts, even if it meant challenging the law.
Referring to STUC president Mike Arnott’s earlier address, Dundee’s Stuart Fairweather emphasized the need for councillors to champion their areas and oppose cuts rather than passively implementing them.
Closing the debate, Clydebank’s Janet Cassidy acknowledged the likely defeat of the motion but stressed the ongoing demand for political challenge against cuts.
Despite support from most trades councils, the motion was ultimately defeated in a card vote. Reflecting on the outcome, delegate Tam Morrison highlighted the urgent need to end cuts, emphasizing that past approaches have failed to prevent significant job losses. While the vote didn’t go their way, the case against cuts remains compelling, signalling a call to grassroots action to bring about change.
Support for key postal service at STUC conference
The Scottish Trade Union Congress has unanimously supported efforts to safeguard essential postal services and protect postal workers.
There are growing concerns among both workers and customers about the potential threat to the universal service obligation (USO) provided by Royal Mail. This obligation ensures a consistent, one-price delivery service across the UK six days a week. Despite earlier assurances from former business secretary, Vince Cable, regarding the preservation of the USO following Royal Mail’s privatization, there are now indications that the company may seek to abandon this guarantee.
Craig Anderson, regional secretary of the Communication Workers Union, expressed appreciation for the congress’s endorsement of the union’s campaign to not only defend the USO but also to enhance the role of postal workers within communities. Anderson emphasized the broader significance of Royal Mail’s services beyond delivering letters and parcels, emphasizing their role in connecting and supporting communities.
He stressed the importance of prioritizing communities and preserving the USO as a crucial element in maintaining social cohesion. Anderson called for Royal Mail and regulators to support the service, support the workers, and invest in the future of public postal services rather than succumbing to cost-cutting measures.
Scottish trade unions come together to oppose privatizations in the healthcare and social care sectors
During the initial session of the annual Scottish Trades Union Congress (STUC), delegates voiced strong support for defending Scotland’s NHS and criticized the SNP-Green Scottish government’s longstanding plans for a national care service (NCS).
Audrey McCabe from Aberdeenshire Unison strongly criticized the NCS proposal, describing it as more of a public relations statement than a plan for improved care.
Unison has consistently raised concerns about the NCS proposals, arguing that while they suggest a publicly owned and accountable organization akin to the NHS, they would actually result in much of the care sector being controlled by the voluntary sector and private companies.
Key points of contention include the lack of national sectoral bargaining, reduced local democratic oversight, and the potential side-lining of council social work departments as primary care providers.
Despite assurances from the Scottish government that the legislation would be amended, unions were dismayed to find unchanged wording in the Bill after its first reading in Holyrood.
Concerns about increasing privatization extended beyond social care, with delegates supporting a motion by the North Lanarkshire TUC highlighting what they termed as “backdoor privatisation” of Scotland’s NHS.
The motion called for the STUC to build on previous successes in advocating for progressive tax measures to generate additional funds for public services. It also proposed conducting research to expose instances of backdoor privatization within the NHS in Scotland.
Drew Gilchrist of the North Lanarkshire TUC, himself an NHS worker, stressed the importance of such research in mobilizing a campaign to stop and reverse privatization while advocating for increased investment in services and the workforce.
Gilchrist cautioned that Scotland should not rely on the notion that its healthcare system is superior to that of England, urging action to counter privatization trends.
New Campaign Video says NHS staff are ‘Sicker than the patients’
Over half of NHS workers suffer from poor mental health, and one in four has even considered suicide due to the challenges they face.
NHS Charities Together say that 52 percent of staff suffer anxiety and 51 percent suffer from low mood.
Frontline 19 has a campaign highlighting that, in many cases, NHS staff are sicker than the patients they are treating.
Group founder Claire Goodwin-Fee said: “The most common reason for sickness absence was poor mental health, responsible for over half a million days lost in one month.”
You can watch the campaign video titled “Sicker Than The Patients” on their website. Frontline19 is a free and confidential service specifically designed for frontline workers, including those in the National Health Service and other frontline services in the UK.
and finally, Filthy Rich: Water privatisation has proved a disaster
Water companies have handed nearly 80 billion to investors since the industry was privatised more than 30 years ago.
Since the privatization of England’s water companies in 1989, they have consistently paid out substantial dividends to shareholders.
English water companies are estimated to pay around £14.7 billion in dividends by the end of this decade.
These dividends benefit shareholders but come at a cost to customers, who are also footing the bill for sewage cleanup and other investments.
When water companies were privatized, they were debt-free. Thatcher wrote off the industry’s £5 billion debt at public expense. However, over the years, they have accumulated significant debt again.
As of now, the big nine water companies in England have a combined debt of £54 billion. This debt burden has raised concerns, especially considering the critical role water companies play in maintaining infrastructure and environmental standards.
Gary Smith of trade union GMB said: “Splashing out fortunes in dividends while racking up enormous debts is a farce.”
The average water and sewage bill in England and Wales rose from £408 in 2021 to £448 from the start of this month. And huge bill increases are expected between 2025 and 2030 to help fund long-overdue investment.
Water companies have also faced criticism for paying large sums to executives while dealing with issues like leaky infrastructure and sewage dumping.
A Solidarity union spokeswoman commented: “Water privatisation has been a disaster. Years of under investment while debt mounted and dividends were paid out. Now customers will be asked to make that money up through higher prices. The obvious answer to this mismanagement is nationalisation but the level of debt built up is one it would be challenging for the State to take on – 54 billion, a far cry from the 5 billion debt written off in 1979 to pave the way for privatisation. Many still believe nationalisation is the way forward but it will be a difficult path now.”
