Retail trade union Usdaw has welcomed Chancellor John Healey's Budget, saying its range of everyday fixes will give struggling households and businesses much-needed breathing space on the cost of living.
General secretary Joanne Thomas said the first Budget under Andy Burnham's leadership had delivered a host of practical changes. She pointed to the scrapping of standing charges on gas bills, which she said could save 60% of households an average of £45 a year, and £1 billion to help poorer households with soaring energy bills, on top of the extended VAT cut on electricity.
The union said the energy package was welcome news for its members, a quarter of whom have had to cut back on heating or electricity because of financial pressures.
Pay and carers
Usdaw said the 3.9% rise in the National Living Wage and National Minimum Wage would give welcome relief to 2.3 million workers. But Joanne Thomas said it was disappointing that the Government appeared to have moved away from its manifesto pledge to bring the "discriminatory" youth rates into line with the rate for older workers.
The union welcomed the end of the Carer's Allowance cliff edge, under which unpaid carers lose their benefit if they earn a penny over the threshold. Replacing it with a taper is something Usdaw had called for, and Joanne Thomas said it "finally recognises the enormous contribution carers make to society". The extension of parental pay to self-employed fathers and partners, she added, "goes some way to meet the needs of modern families".
Levelling the playing field with online giants
Following lobbying from trade unions, the Budget increases the taxes paid by online retailers such as Amazon and eBay, which Usdaw said could raise an extra £1 billion. The union described raising the small business threshold to £18,000 as a positive move, but said the relief should be extended to larger bricks-and-mortar retailers to truly level the playing field.
Joanne Thomas said the Chancellor could not raise income tax, national insurance or VAT without breaking manifesto commitments, but the extra surcharge on banks, which have enjoyed bumper profits from higher interest rates, was "only right - the wealthiest should pay their fair share of tax".
