Civil servants to stage national strike on Budget day

Hundreds of thousands of civil servants are to stage their first national strike on Budget day in an escalation of a bitter dispute over cuts in redundancy pay, it was announced today.

Chancellor Alistair Darling will have to pass picket lines next Wednesday - March 24 - on his way from the Treasury to the House of Commons to deliver his speech.

The Public and Commercial Services union said it wants to "ratchet up" political pressure after a 48-hour walkout last week and a continuing overtime ban which officials warned would soon start to hit jobcentres, benefit offices, ports, driving tests and courts.

A national day of action is also being held on Friday, including a battle bus touring the Dulwich and West Norwood constituency of Cabinet Officer minister Tessa Jowell, who has been leading negotiations over cuts in redundancy payments.

The union said last week's strike was supported by more than 200,000 civil servants, and attacked Ms Jowell for saying that most PCS members worked.

The union has written to Prime Minister Gordon Brown and Business Secretary Lord Mandelson asking how they could urge both sides in the British Airways dispute to hold talks when the Government is "refusing" to negotiate with the PCS.

The union's general secretary Mark Serwotka said: "If further disruption and strike action on Budget day is to be avoided, then the Government needs to enter into negotiations and reach an agreement that protects existing members' entitlements.

"Loyal civil servants will not stand by and allow the jobs and services that they are proud to deliver to be cut on the cheap, and are willing to take action to defend jobs and services. The Government cannot bury its head in the sand and needs to recognise the depth of anger it has provoked in tearing up the contracts of hard- working civil servants."

The PCS said changes being imposed on civil servants will see them "robbed" of up to a third of their entitlements, losing them tens of thousands of pounds if they are forced out of a job.

The union is also pressing ahead with a legal challenge against the Government and expects the case to be heard later this month.

Ms Jowell said: "It is very disappointing that PCS continues to reject a deal which all the other unions agree is fair to both staff and taxpayers. We have been clear that this is the final settlement and I urge the leadership of PCS to call off their planned industrial action.

"We have responded to union concerns by ensuring additional protection for lower paid staff. This means that the vast majority of civil servants who earn £20,000 or less - nearly half the entire workforce - will see little or no change.

"Around 70% of PCS members decided not to take part in last week's action, meaning that around 85% of all civil servants were working as normal.

"This low turnout for two days in a row by PCS members supports the view that, after 18 months of negotiation and consultation, the right deal has been reached."