Chancellor Jeremy Healey met with senior trade union leaders on Wednesday evening at No. 11 Downing Street as part of preparations for the upcoming Budget, scheduled for next Wednesday. The meeting, which brought together more than a dozen union chiefs, offered them an opportunity to press the government on various policy demands amid a backdrop of ongoing economic challenges.
The gathering followed Healey’s earlier announcement approving drilling at the Jackdaw gas field in northern waters. While the event lacked the convivial atmosphere of historically well-known meetings between Labour governments and union leaders—offering only tea, coffee, and inexpensive biscuits rather than food or alcohol—it provided significant access for union representatives to engage directly with the Chancellor.
Among the attendees were prominent figures such as Andrea Egan, leader of the Unison union, who advocated for new wealth taxes to fund increased public spending. Egan expressed disappointment over the Chancellor’s rejection of raising capital gains tax on assets like shares and second homes, underscoring her call that it is “time to tax the rich.” Daniel Kebede, head of the National Education Union (NEU), urged Healey to increase school funding, citing a 74 percent decrease in real-term expenditures in English schools since 2010. GMB union leader Gary Smith also pressed for enhanced support for defence spending and energy-intensive industries, highlighting the risks to sectors such as ceramics and brick manufacturing from high energy costs.
Notably absent was Unite union leader Sharon Graham, who reportedly was not invited due to concerns about her confrontational style. A source familiar with the guest list commented that her presence might have disrupted the event.
The meeting is viewed by some as indicative of a closer relationship between the union movement and the Labour government led by Prime Minister Andy Burnham. Unions have been major financial backers of the Labour Party in recent years, and some officials believe Burnham demonstrates a more instinctive understanding of union concerns than his predecessor, Keir Starmer. A senior union official not present at the meeting noted expectations that the current government is more likely to accommodate union demands.
Since Labour’s victory in the 2024 general election, unions have secured several policy wins, including significant increases in the minimum wage linked to inflation, removal of the two-child benefit cap, and reforms lowering thresholds for strike ballots. The Employment Rights Act 2025, influenced heavily by union input, strengthens union powers in workplaces and reduces the membership percentage required for official recognition from 10 percent to 2 percent, measures estimated by the government to potentially cost businesses up to £5 billion annually.
Despite the close engagement, a Treasury source emphasized the government’s commitment to “economic and fiscal discipline” heading into the Budget. The recent meeting was described as an opportunity to listen to unions’ perspectives on the pressures facing workers and priorities for forthcoming fiscal policy, while exploring avenues for continued cooperation between government and unions. Details of Healey’s Budget remain largely under wraps, but union leaders remain hopeful that key demands on taxation and spending will be addressed.
