Warning as Brits could be slapped with extra £878 tax bill ‘thanks to Labour’s £14billion pay deal with unions’

LABOUR’s £14billion pay deal with unions could slap workers with an extra £878 tax bill, the Tories warned last night.

Chancellor Rachel Reeves has ruled out raising national insurance, VAT or income tax in the Budget but says “difficult decisions are to come” amid a £22bn blackhole.

Alamy

Brits could be slapped with an extra £878 tax bill ‘thanks to Labour’s £14billion pay deal with unions’ – pictured Shadow Treasury Minister Laura Trott[/caption]

Tory analysis found if income tax funds union deals, the basic rate could rise by 2.24p, costing the average worker an extra £878 per year.

Shadow Treasury Minister Laura Trott hit out at Labour for prioritising “union paymasters over the taxpayer”.

The RMT union met with the Department for Transport yesterday to demand a pay deal.

DfT said: “Fixing railways is at the heart of our plan.”

Yesterday The Sun reported that Keir Starmer was “extremely” disappointed that rail passengers faced a new wave of rail strikes – despite train drivers winning their huge pay hike.

The Prime Minister has come under fire after a 14 per cent deal over three years was struck with union Aslef who have now embarked on industrial action against LNER.

Drivers working for LNER will walk out on weekends from the end of the month over working conditions – separate from the pay dispute.

Sir Keir’s official spokesman called for fresh talks to “resolve this dispute as quickly as possible”.

Number 10 added: “It is extremely disappointing for passengers.

“This dispute relates to specific local arrangements on working patterns not pay.”

The unrest over the proposed pay deal will now lead to more strikes and calls for more pay hikes, critics say.