A warning by Ed Balls that Labour would not reverse the freeze on the pay of public sector workers has raised the prospect of unions considering quitting the party, it was disclosed today.
The Shadow Chancellor sparked fury among officials of unions affiliated to Labour when he said in a major speech that public sector pay restraint was “inevitable”.
Unions representing millions of teachers, nurses, council staff, civil servants and other public sector workers are embroiled in a bitter dispute with the Government over changes to pensions and are also campaigning against a decision by George Osborne to cap pay to 1 per cent a year.
Mr Balls, In his first speech since Ed Miliband indicated a relaunch of the party’s economic plan, told the