UK train strikes and energy hikes add to a week of turmoil
LONDON (AP) — Trains in Britain all but ground to a halt Saturday as coordinated strikes by rail workers added to a week of turmoil caused by soaring energy prices and unfunded tax cuts that roiled financial markets.
Only about 11% of train services were expected to operate across the U.K. on Saturday, according to Network Rail. Unions said they called the latest in a series of one-day strikes to demand that wage increases keep pace with inflation that is expected to peak at around 11% this month.
Consumers were also hit with a jump in their energy bills Saturday as the fallout from the Russian invasion of Ukraine pushes gas and electricity prices higher. Household bills are expected to rise by about 20%, even after the government stepped in to cap prices.
Prime Minister Liz Truss, who has been in office less than a month, cited the cost-of-living crisis as the reason she moved swiftly to introduce a controversial economic stimulus program, which includes 45 billion pounds ($48 billion) of unfunded tax cuts.
Concern that the plans would push government debt to unsustainable levels sent the pound tumbling to a record low against the dollar this week and forced the Bank of England to intervene in the bond market.
“We need to get things done in this country more quickly,” Truss said in an unapologetic column for The Sun newspaper published Saturday. “So I am going to do things differently. It involves difficult decisions and does involve disruption in the short term.”
Many workers aren’t convinced.
Four labor unions have called three, 24-hour strikes over the next eight days, ensuring service disruptions for much of the week.
The timing is of particular concern for runners and fans trying to get to the capital for Sunday’s London Marathon, with is expected to attract 42,000 competitors.
Mick Lynch, general secretary of the Rail, Maritime and Transport Workers Union, said the strikes were designed to target the annual conference of Truss’s Conservative Party, which begins Sunday in Birmingham, England.
“We don’t want to inconvenience the public, and we’re really sorry that that’s happening,’’ Lynch said. “But the government has brought this dispute on. They (put) the challenges down to us, to cut our jobs, to cut our pensions and to cut our wages against inflation.”
Lynch urged Transport Secretary Anne-Marie Trevelyan to take “urgent steps to allow a negotiated settlement.” The union said the latest figures showed railway bosses benefiting from government tax cuts.
As a result of the strike, there will be no service between London and major cities such as Birmingham, Manchester and Newcastle on Saturday. Lingering disruptions are likely to effect service on Sunday morning as well.
Runners and spectators traveling to London for the marathon, which begins at 9:30 a.m., have been warned they are likely to be frustrated by the strike.
“It is particularly disheartening that this weekend’s strike will hit the plans of thousands of runners who have trained for months to take part in the iconic London Marathon,’’ said Daniel Mann, director of industry operations at Rail Delivery Group. “That will also punish the many charities, large and small, who depend on sponsorship money raised by such events to support the most vulnerable in our community.”