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PCS responds to pre-budget

9 December 2009

The government should be focussing more on tackling the £100 billion plus of uncollected, evaded and avoided tax instead of talking about slashing public sector spending and capping public sector pay, PCS said today in its response to the pre-budget report.

100,000 jobs have already gone in civil and public services, leading the union to warn that key areas such as justice and civilian support for the armed forces would be further damaged if the Chancellor swings his axe to pay for the financial crisis.

The union went on to criticise the government of being cynical in arguing that it could protect the delivery of frontline services whilst cutting spending, as part of its pre-election manoeuvring.

The union warned that capping pay would further undermine morale and entrench low pay in the civil service where 1 in 5 earn less than £15,000. Pay in the civil service is lower than that of comparable jobs in the private sector with pay gaps of more than £5,000 between the civil service and private sector.

The union went on to argue that public spending cuts would choke off recovery and turn recession into a depression.

The union also expressed concern over moves to cap employer contributions to public sector pensions and called on the government to reaffirm its commitment to honouring the pensions agreement it made two years ago with public sector unions. Far from being gold plated, the average civil service pension is £6,500.

Commenting, Mark Serwotka, PCS general secretary, said: "Having experienced over 100,000 job cuts our members know, as the government try to outflank the Tories ahead of a general election that it is false to think that you can cut public spending and protect frontline services.

"Following on from last week’s unilateral changes to civil servants’ redundancy terms, it is clear that the government are preparing to cut more jobs on the cheap.

On public sector pay and pensions he added: "The hundreds of thousands of low paid civil and public servants who are keeping this country running and getting people back into work will view the prospect of further cuts in real terms as scant reward for their hard work.

"Pay cuts and pay freezes have been a common feature for civil servants as the government has sought to drive down pay, with 40% of staff working in Jobcentres receiving 0% last year and 1% this year.

"To make matters worse there will be concern over the future of public sector pensions and we would urge the government to stand by the agreement it made on change to public sector pensions two years ago.

On tax, he concluded: "Moves announced today to tackle tax avoidance don’t go nearly far enough. The government should be going further in bearing down on the billions worth of tax which goes uncollected, avoided or evaded.

"The revenue raised by the one off tax on City bonuses is just a drop in the ocean. The government should be making those who caused the financial crisis pay more of a fair share rather than hitting those who rely on public services and those who deliver them."
 

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