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Darling addresses union members Darling addresses union members
(9 minutes later)
Alistair Darling is addressing the TUC conference where delegates have been calling for public sector pay rises and a windfall tax on energy companies.Alistair Darling is addressing the TUC conference where delegates have been calling for public sector pay rises and a windfall tax on energy companies.
The chancellor is set to tell delegates that a stable economy is a means to fairness and rising prosperity and no "unnecessary risks" must be taken. The chancellor has told delegates that a stable economy was a means to fairness and said he would continue to deliver sound public finances.
Unions have voted for national protests against government policy of limiting pay increases to 2% a year.Unions have voted for national protests against government policy of limiting pay increases to 2% a year.
Unison said Mr Darling could expect a "frosty" but polite reception. Mr Darling, welcomed with polite applause, is now taking questions.
During his speech at the annual conference in Brighton, Mr Darling is expected to say economic stability is essential to deliver a fairer society. During his speech at the annual conference in Brighton, Mr Darling agreed times were "tough" but said families and businesses would face even tougher times if "we were to throw away the stability" the government had built up.
He will say: "We should not forget what together we have achieved over the past 11 years. And that is why I am determined that we should not put those achievements at risk by taking unnecessary risks with economic stability. "A stable economy is not an optional extra. It is a means to an end - fairness ... the alternative would cost jobs up and down the country."
"A stable economy is not an optional extra. It is a means to an end - fairness, rising prosperity, opportunities for all."
A senior aide to the chancellor said he intended to signal that although pay was important, investment in schools and hospitals could be put at risk through higher wage claims - and inflation could rise further, hitting the lowest paid the most.
'Morally bankrupt''Morally bankrupt'
He said bonuses should be for "hard work" not "big mistakes".
On windfall taxes he said the most important thing was energy security, reducing reliance on imported fuel and gas and keeping prices low - but that would require continuous investment.
He told delegates that Labour had "changed this country" and that should not be taken for granted: "A country changed for the better, not at the expense of economic stability, but because of it."
On Monday the TUC, holding its annual conference in Brighton, voted overwhelmingly to push the government to reassess its public sector pay policy.On Monday the TUC, holding its annual conference in Brighton, voted overwhelmingly to push the government to reassess its public sector pay policy.
Mark Serwotka, general secretary of the Public and Commercial Services Union, said the 2%-a-year figure was "morally bankrupt" at a time of rising living costs.Mark Serwotka, general secretary of the Public and Commercial Services Union, said the 2%-a-year figure was "morally bankrupt" at a time of rising living costs.
His union is to ballot its 270,000 members on strikes, and teachers and lecturers are moving towards industrial action.His union is to ballot its 270,000 members on strikes, and teachers and lecturers are moving towards industrial action.
Some delegates are warning of a "winter of discontent", with widespread public sector disruption.Some delegates are warning of a "winter of discontent", with widespread public sector disruption.
A Unison spokeswoman said: "I think there will be a polite reception for Alistair Darling, but I also think it will be quite frosty.
"People will be interested to see what he's got to say about how people are going to be helped during the credit crunch.
"We will be listening carefully. We don't want the usual mantra about global forces."
'Something new''Something new'
A senior figure from another union, who asked not to be named, told the BBC: "There's a lot of anger about the government's failures." The unions are also pushing for a "windfall tax" on the "large" profits recorded recently by utility firms, a demand which about 100 Labour MPs have indicated for.
"Alistair Darling is going to be asked to account for them. He can't come down here saying he's got an unblemished record. He needs to start saying something new, but there's no sign of this so far." The conference backed a motion saying the government needs a "coherent" policy just before the chancellor started speaking.
The unions are also pushing for a "windfall tax" on the "large" profits recorded recently by utility firms. This demand is backed by more than 100 Labour MPs. The conference backed a motion saying the government needs a "coherent" policy just before the chancellor started speaking.
Last week the government ruled out a one-off rebate for households struggling to pay fuel bills.Last week the government ruled out a one-off rebate for households struggling to pay fuel bills.
Tony Woodley, joint leader of Unite, Britain's biggest union, called the decision a "downright disgrace".Tony Woodley, joint leader of Unite, Britain's biggest union, called the decision a "downright disgrace".
But Environment Secretary Hilary Benn said energy companies should still "make a further contribution" to reducing prices in the long term, such as helping to insulate homes.But Environment Secretary Hilary Benn said energy companies should still "make a further contribution" to reducing prices in the long term, such as helping to insulate homes.
Speaking to TUC delegates earlier, Universities and Skills Secretary John Denham announced that the minimum pay of apprentices is to increase by £15 a week to £95.Speaking to TUC delegates earlier, Universities and Skills Secretary John Denham announced that the minimum pay of apprentices is to increase by £15 a week to £95.
Prime Minister Gordon Brown will address union leaders at a private dinner later on Tuesday.Prime Minister Gordon Brown will address union leaders at a private dinner later on Tuesday.