Budget is ‘critical point’ for Unite’s continued Labour support – Sharon Graham

The upcoming Budget is a “critical point” for whether Unite members choose to disaffiliate from Labour, the union’s leader has said.

Unite general secretary Sharon Graham warned last month that workers could turn their backs on the party if they do not change course.

As Labour’s party conference began in Liverpool, she said it was getting “harder and harder to justify” affiliation with Labour and that the “time is getting close” to make a choice.

“My members are scratching their heads and they’re asking, ‘how does a Labour Government allow two oil refineries to shut with absolutely no plan? How have we got a net zero plan that has workers at the end of the queue? Where is the plan for workers? Where is the transition? Where is the money?’,” she told Sunday Morning With Trevor Phillips on Sky News.

“And so for my members, whether it’s public sector workers all the way through to defence, are asking ‘What is happening here?’

“Now when that question cannot be answered, when we’re effectively saying ‘look, actually we cannot answer why we’re still affiliated’, then absolutely I think our members will choose to disaffiliate, and that time is getting close. “

Ms Graham was asked how long Sir Keir Starmer has before Unite makes that decision.

“The Budget is an absolutely critical point of us knowing whether direction is going to change,” she said.

She called for a loosening of the fiscal rules Chancellor Rachel Reeves has pledged to stick to.

“Those fiscal rules need to be changed. Other countries are doing it. We should stop dancing around our handbag and do that.

“If that Budget is essentially nothing, it’s insipid, I think we’ve got a real problem our hands, because without the money to make the change, then nothing is going to change.”

Housing Secretary Steve Reed dismissed questions about potentially losing the support of Unite.

Asked if the fiscal rules are more important than keeping the union’s backing, Mr Reed told the Sunday Morning With Trevor Phillips programme on Sky News: “I don’t think Unite will walk.

“There is more money going into Unite members’ pockets, just like there’s more money going to everybody’s pockets, because wages are now rising faster than prices.”

Ms Graham said people feel they are “being kicked” and Labour needs to “help those people up”.

She also called for Labour to “wake up” and “do Labour things”.

The Unite boss said members are not that interested in Labour’s deputy leadership contest.

Amid speculation about a possible leadership challenge from Greater Manchester mayor Andy Burnham, she said there was “no point” changing around the person at the top if policies stay the same.