The Breached Cap: Austerity wavers as the pressure on the Tories mounts

A hole has been burst open in through wall of austerity built by the Tories. The demands of NHS staff threaten to widen that breach and bring the prospect of toppling the wall altogether closer to reality.

Since the impromptu 2017 general election - where the Conservatives were the biggest losers, foiled by their own arrogant power grabbing scheme - the austerity regime has been badly shaken.

Austerity has depended upon Tory swagger, and myths about Labour's profligacy, and the election punched holes in both of those. Their majority lost, the Tories have been under mounting pressure to scale back. To compromise.

Last week they finally cracked. The public sector pay cap was breached. Now, on paper, it is a very small breach. In fact, there was anger as the breach was not even enough to prevent a real terms pay cut for those receiving it. But it is the first sign of austerity finally wavering after seven long years.

So, last Tuesday the Government took the decision to rescind the public sector pay cap for the police and prison officers. It was only a small breach of their long term policy. In fact, half of the 2% has been designated a 'reward' and won't be permanent.

The fact that it was only for a selected few was deeply criticised. Unions were obviously upset at what appeared to be an attempt, from their perspective, of pitting public sector workers against one another - undermining their collective bargaining stance.

The Government followed up with more announcements that didn't help to assuage the Trade Unions. The Government departments would now be allowed to make some discretionary decisions about where to breach the pay cap for it's public servants - but within a limited purview of managing recruitment issues.

The breach of the cap is not, however much the Tories would like to advertise it as such, a pay rise. In reality, the rise in prices, with consumer price inflation hitting 2.9%, will leave the less than 2% pay increase (for the select staff the Tories deigned to give it to) as, effectively, a pay cut. As with any good Tory policy, there's always a way to get out of actually funding it.

The Tories did win some important votes last week. They just about edged their key vote on the second reading of the exit bill, but with expectation even from Tory benches of huge changes to prevent a massive Government legislative power grab. The Government also won the vote to control the key legislative oversight committee.

But from the Tories there came a tangible sense that the wagons were being circled. Defeated on a non-binding motion, which they ultimately chose not to oppose, calling for a fair pay rise for NHS staff, they announced they would take no part in other non-binding motions. NHS staff immediately called for a 3.9% pay rise.

While the votes have no practical effect, they represent the will of Parliament. While for the Tories it will be about avoiding any fights that might provide the possibility of a perceived defeat, it doesn't look good for them after their power grabbing actions over the last few months - from the election, to the exit bill, to the legsilative oversight committees.

The Tory backdown on the pay cap, even if slight; it's incessant grasping after legislative power; it's choice to avoid fights; these are the signs of a Government on the backfoot, with the tide against it. The limited lifting of the cap is a first big breakthrough for anti-austerity campaigners in a long, long war.

The Tory's loss at their power grabbing election may prove to have been the first nail in the coffin of austerity. And it's long overdue. The most vulnerable in Britain have been put through seven years of pain. And for what?

More debt, a Government spending millions taking disabled people to court to cut their welfare, no recovery, the cost of living still outstripping wages, a 'light touch' approach to welfare that has driven homelessness.

There is light coming through the breach. But austerity is not yet toppled. The next big fight against austerity will be on the rollout of Universal Credit. The Commons Work and Pensions Committee heard testimony from a range of contributors from charities and councils, who all warned of impending disaster.

Failures in the set up of previous rollouts, failure in project delivery, claimants facing a cliff edge on rising rents. The Tory failure on other rollouts doesn't bode well either: the 'free' childcare expansion was underfunded and is falling short.

This is the Britain of austerity, where the impact of policies, and approaches implementing them, on ordinary people is seen as less important than headline announcements and the artificial balancing of numbers for moralistic ideological reasons.

We can do better and progressives need to come together to oppose austerity, to get hands into that breach and bring down the wall.

References

'Public sector pay cap to be lifted'; on the BBC; 12 September 2017.

'Half of 2% pay rise for police is reward "for the contribution made by police" in past year, and won't be consolidated or permanent'; from Robert Peston, on Twitter; 12 September 2017.

'UK inflation rate rises to 2.9%'; on the BBC; 12 September 2017.

'Brexit: EU repeal bill wins first Commons vote'; on the BBC; 12 September 2017.

'Government wins committee change vote'; on the BBC; 12 September 2017.

'MPs Agree To Give All NHS Staff ‘A Fair Pay Rise’ After Tory-DUP Alliance Falters: DUP had signalled they would back Labour'; in The Huffington Post UK; 13 September 2017.

Denis Campbell's 'Unions call for 3.9% pay rise plus £800 for a million NHS staff: Demand is based on inflation and seven years’ back pay, after lifting of prison and police officers’ pay cap'; in The Guardian; 14 September 2017.

Daniel Kraemer & Harriet Agerholm's 'DWP spends £39m defending decisions to strip benefits from sick and disabled people - Exclusive: Government appeal process condemned as ‘traumatic’ and a ‘waste of time and money’'; in The Independent; 28 August 2017.

'Homelessness rise 'likely to have been driven by welfare reforms''; on the BBC; 13 September 2017.

Ashley Cowburn's 'Universal Credit delays leave claimants to 'drop off a cliff' in rent arrears, hear MPs: It comes after Citizens Advice warned the accelerated roll-out of the new regime was a ‘disaster waiting to happen’'; in The Independent; 13 September 2017.