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Darling survives TUC showdown

09/09/2008

Alistair Darling avoided being jeered or heckled at the TUC conference, despite the backdrop of the threat of public sector worker strikes and recession.

The chancellor's address, in the afternoon session in Brighton, was set against the backdrop of the threat of mass worker walkouts and recession. But he was not jeered as had been suspected by some commentators, only receiving cold silence from delegates.

He told union bosses and workers, who provide much of Labour's funding, that not taking risks is the foundation that the government's economic successes of the last decade years have been built upon.

"A stable economy is not an optional extra - it is a means to an end: fairness, rising prosperity, opportunities for all," Mr Darling said.

The chancellor blamed the credit crunch and rising oil and food prices for the problems faced around the world, but insisted Britain was better placed to cope with the current situation than in previous decades.

"Yes, times are tough for you and your families. But yes, too, we will get through them. With strong fundamentals and with the right support from the government, we will get through this provided we do not risk stability because we will never return to those days that cost so much to people."

He rejected calls for a windfall tax on energy companies as a means of helping those facing high energy bills this winter, pointing out most profits made by energy firms are taxed overseas.

But he added: "I am acutely aware of the fact we need to strike the balance between the long-term investment we need… and the short-term need to help people."

On public sector pay, the chancellor admitted his comments were "not likely to be popular in this particular hall" but insisted keeping inflation in check was important to prevent the low-paid, unemployed and elderly from suffering.

On Monday unions rejected calls for nationwide strike action over the government's two per cent public sector worker pay rise but a commitment to hold mass protests was agreed upon.

There were murmurs of dissent when Mr Darling told delegates that public sector pay has risen higher than private sector pay in recent years – he was forced to add "it has, actually" – but apart from this the TUC audience did not verbally abuse the chancellor.

Mr Darling's appeal to unionists not to forget Labour's record in government over the last 11 years may have had an impact on this.

"Of course we need to do more, but don't let that overshadow what we've achieved," he continued. "A country changed for the better – not at the expense of economic stability, but because of it."

Gordon Brown will attend the conference in a behind-closed-doors TUC dinner later this evening.