“Yesterday she said, this year it won't work, because of the budget”

It’s more likely true. If they aren’t giving raises, it won’t matter. He will need to bully them into giving him a raise. Do this by getting another offer and making them beat it.

I’ve worked for a company where people didn’t get raises, even when managers requested them. The on,y way to manipulate a raise was to apply, interview, or get an offer from a competitor and saying, “I’ve been given an offer by another company. I wasn’t even looking for a job. They offered me 2 x more. Can you get me 2x? If not, how about 1.5x?”

Then, you have to hope they don’t put you on the first to be fired list when it comes to cost reductions.