Public and Commercial Services Union

Date: 14 June 2010             Ref: BB.61/10

The National Executive Committee met on 10 June to consider the cuts programme announced by the Coalition Government. The NEC is absolutely opposed to the view that there has to be cuts in public services to pay for the economic crisis which was primarily caused by the collapse and bail-out of the financial sector.

We know there are alternatives to public spending cuts to deal with national deficit and that cuts would harm, not help, the economy. The NEC agreed campaign activity on Budget Day, 22 June to make our case.

Cuts announcements

The new government has made it clear that its priority is to cut public spending on an unprecedented scale as a means of dealing with the national deficit.

Announcements have been made on making £6.25 billion of cuts in this financial year, including cuts of £500 million in non-departmental public bodies. The government has also said it will implement a recruitment freeze in the civil service, a moratorium on IT contracts and a freeze on spending on consultants except where authorised by a Secretary of State. In the Queen’s Speech further measures were announced including a new welfare reform bill.

Further cuts announcements are expected in an emergency Budget due on 22 June. Moves to implement a threatened pay freeze, and possibly further detail on the proposed commission on public sector pensions may be expected. The full cuts programme will be laid out in the Comprehensive Spending Review in the autumn.

At this stage there is little detail on the exact nature and timing of the cuts, or on the specific implications for members’ jobs. PCS Groups have been asked to make urgent contact with their management in order to ascertain how they intend to proceed. PCS has written to the Head of the Civil service, Sir Gus O’Donnell, setting out our concerns and requesting a meeting to discuss the process of consultation that should take place centrally on spending decisions.

A meeting will take place soon of the National Campaigns Liaison Group in order to consult Groups on cuts proposals in their areas, and on campaigning work.

PCS alternative

The government tells us that the national deficit has to be addressed by drastic cuts in public spending: job cuts, pay freezes and cuts in public sector pensions. The Coalition says (as the Labour Government said previously) that they want to make cuts but protect services by cutting “back office” functions not frontline services. Many people are concerned about the future of their jobs and services.

We know from experience that the distinction between back office and frontline is wrong. All staff carry out work which makes service delivery possible. Cuts damage services.

And there are alternatives to cuts. The country is in debt because the banking sector collapsed sparking a recession. Bailing out the banks cost billions, and the recession hit tax revenues and increased unemployment.

We know there is more than £100bn alone in the tax gap: tax that is uncollected, evaded or avoided by large companies and wealthy individuals. By just collecting the tax that is rightfully ours we could avoid public service cuts. A 'Robin Hood Tax' on financial speculation could raise $400bn globally.

Cuts will damage the economy. By cutting public sector jobs, unemployment will increase – increasing the costs to government through more people unemployed and fewer people paying income tax. Less consumer spending will mean fewer transactions and less tax revenue through VAT. It will also result in the private sector cutting back because there is less demand.

Instead, the Government should be creating jobs to boost employment and tax revenue.

Campaign action – Budget Day 22 June

At its July meeting the NEC will agree proposals on launching a new national campaign and other measures to implement ADC motions on defending jobs and public services. Joint union campaigning will be of central importance in defending jobs and services. At the July meeting the NEC will consider concrete plans for approaches to other unions on joint campaigns.

In the meantime, the NEC has agreed to organise and support events throughout the UK to coincide with the Budget on 22 June. A national campaigning event will be organised in Whitehall to publicise the union’s case for an alternative method of dealing with the economic crisis. Further details will be available on the PCS website.

The NEC also agreed to encourage Groups and Branches to organise and participate in local and regional protests and activities, with other unions where possible.

Activities could range from lunchtime protests in town centres with fellow trade unionists, to holding members’ meetings or simply spending time recruiting non-members to the union.

Branches will receive by Friday 18th June a mailing of posters, placards and template leaflets to advertise events. Further resources are available from your regional office.

  22 June budget day event template flyer

  22 June budget day event template poster

In line with policy agreed at ADC, we will be calling for the TUC to organise a coordinated campaign including a national demonstration over the cuts in Central London in the autumn. We want to have a broad campaign that involves community groups as well as the trade union movement.

Branches are urged to:

• Organise activities around the Budget on 22 June.
• Continue to forge links with other local trades unions and trades councils
• Keep up to date with information on the proposed cuts that is available on the PCS website and also the TUC touchstone blog
• Recruit your colleagues to the union – there’s never been a more important time to join PCS.

Hugh Lanning
Deputy General Secretary