Starmer spent ‘£8m a day’ in pay rises since taking office to end strikes
Sir Keir Starmer has spent the equivalent of nearly £8 million a day on pay rises for striking train drivers and doctors after vowing to end the industrial action crippling Britain.
The Prime Minister agreed a deal with train drivers worth about £55 million on Wednesday, bringing an end to two years of strikes.
It followed a similar agreement that was reached with junior doctors earlier this week, ending walkouts that led to cancelled appointments across the NHS.
In total, Sir Keir has agreed pay rises worth an estimated £585 million – equal to £7.8 million for each of his 75 days in office to date.
The settlements form part of a wider effort by the Government to end the worst wave of industrial action to hit Britain since the 1980s.
But there are fears that, rather than accepting the payouts given by Sir Keir, union barons will instead seize on the deal in order to push for even more money.
The British Medical Association (BMA) has already suggested fresh junior doctor strikes could follow if pay is not restored to 2008 levels over time.
The settlement with the train drivers came on a day when it was disclosed that Sue Gray, Sir Keir’s Chief of Staff, is paid more than him after a change to the rules on special adviser pay.
For the 19,000 train drivers set to benefit, this year’s 4.5 per cent increase alone could be worth £55 million, if applied to the average salary of a train driver last year.
However, this would not account for any back payments due under the deal, meaning the true cost could be even higher.
On Wednesday, Mick Whelan, the general secretary of Aslef, which represents train drivers, labelled the previous Tory government “destructive” as he announced an end to walkouts.
“The strength and resilience and determination shown by train drivers to protect their hard-won and paid-for terms and conditions against the political piracy of an inept and destructive Tory government has prevailed,” he said.
“It was not a fight we sought or wanted. All we sought after five years without a pay rise, working for private companies who, throughout that period, declared millions of pounds in profits and dividends to shareholders, was a dent in the cost of living.”
Mr Whelan praised Louise Haigh, the Transport Secretary, saying “the adults entered the room” to agree “an equitable way forward”.
Helen Whately, the shadow transport secretary, said it was “no surprise” the Government’s offer to Aslef had been voted through.
“It’s an inflation-busting pay rise, with ‘no strings attached’ for reforms or improvements to services for passengers,” Ms Whately said.
“It will do nothing to prevent strikes in the future. The Government has failed to take responsibility.
“They don’t want to do the hard work of negotiating a fair, affordable settlement. Easier to just say yes to the unions and have taxpayers pick up the bill.”
According to the Nuffield Trust, the immediate cost of pay rises agreed for junior doctors will equate to £530 million, inclusive of backdated payments.
The deal represents an increase of 22.3 per cent on average over the next two years. The BMA had been asking for a 35 per cent uplift.
Dr Robert Laurenson and Dr Vivek Trivedi, the co-chairmen of the BMA junior doctors’ committee, warned the Government there was “still a long way to go”.
In a direct challenge to Wes Streeting, the Health Secretary, they said: “In the event the pay review body disappoints, he needs to be prepared for the consequences”.
Dr Laurenson and Dr Trivedi added that the “campaign is not over” and declared the past two years of “standing on picket lines and fighting for our worth” had paid off.
Sir Iain Duncan Smith, a Conservative MP and former leader of the opposition, said: “Everyone who’s protested for political reasons against the Tories has got huge settlements and he’s claiming there is no money.
“Well, there is now, because where’s this money coming from? This is all going to be like pouring money into a black hole, and the thing with black holes is you never see it again.”
Sir Keir and Rachel Reeves, his Chancellor, agreed a separate round of inflation-busting pay rises within weeks of taking power in July.
Ms Reeves accepted the independent pay review body’s recommendations in full, meaning teachers and nurses will receive a 5.5 per cent pay increase.
Doctors and dentists’ pay will go up by 5 per cent, while senior NHS managers will enjoy a rise of 5 per cent.
The increases come despite Sir Keir and Ms Reeves having already stripped about 10 million pensioners of their winter fuel allowance.
The Government claims the decision to means test the annual payment for retirees is to fill a £22 billion black hole at the heart of the economy, a claim denied by the Conservatives.
A government spokesman said: “We make no apology for resetting the relationship with employers and unions to resolve the disputes we inherited through meaningful negotiations.
“Prolonged disputes costed our economy and the taxpayer, so by boosting incomes, ensuring workplace rights are fit for a modern economy and tackling insecure work, we’ll increase productivity and create the right conditions for sustained economic growth.”