Labour's £14 Billion Union Pay Deal Could Mean £878 Tax Hike for Workers, Tories Warn

Tax Bill Concerns

Chancellor Rachel Reeves has assured no increase in national insurance, VAT, or income tax in the upcoming Budget. However, Tory analysis suggests that if income tax funds union deals, the basic rate could rise by 2.24p, costing the average worker an extra £878 annually.

Union Prioritization Criticism

Shadow Treasury Minister Laura Trott criticized Labour for prioritizing "union paymasters over the taxpayer" in light of the £14 billion pay deal with unions.

Rail Strikes and Disputes

Recent discussions between the RMT union and the Department for Transport have highlighted the focus on resolving railway issues. However, the ongoing disputes over pay have led to strikes, with drivers at LNER planning industrial action over working conditions.

Call for Resolution

As tensions rise, calls for fresh talks to resolve the pay disputes and potential strikes have been made by Keir Starmer's spokesman and Number 10, emphasizing the importance of resolving the issues swiftly.