Companies 'tipped off' about Budget, claims union

Firms are "boasting" of having inside knowledge of George Osborne's emergency Budget, a leading trade union claimed today.

Unison said a business association that brings together companies bidding for local government contracts had sent an email to members telling them pension protection for public sector workers transferred to private firms would be abolished by the new Chancellor on Tuesday next week.

The association said it had held private discussions with ministers, according to Unison, which accused the Government of helping private companies at the expense of low earners.

The union complained that abolishing pension protection for low paid public sector workers would not save any money. At present, when a contract is transferred from the public sector, staff retain the right to pay into a comparable pension scheme.

Dave Prentis, general secretary of Unison, said: "It's totally disgraceful and unconstitutional that multi-national companies should be given details of what is to be in the emergency Budget. This is a clear indication that we are not, as the Cameron mantra goes, all in this together.

"If the Fair Deal on pensions is abolished it is low-paid workers who will lose out. Many thousands would no longer be able to save for their retirement and would have to rely on benefits, at a significant cost to the taxpayer.

"The fact that its abolition won't save the country a single penny shows that the intention is to make these contracts more lucrative for private companies."