A call for a 1% wealth tax is being made by Unite to support public sector pay and NHS recruitment.
- This proposal seeks to implement a significant 10% pay increase for public sector employees.
- The motion will be discussed at the TUC conference, revealing potential tensions with Labour leadership.
- Unite estimates a generation of £25 billion annually from the proposed tax on assets over £4 million.
- The suggested tax reflects rising demands from various unions for substantial investments in public services.
Unite has proposed a notable 1% tax aimed at individuals whose fortunes exceed £4 million to fund essential public services. The initiative seeks to deliver a considerable 10% pay increase for public sector workers, as well as address over 100,000 vacancies within the NHS. This initiative is set to be a focal point at the upcoming Trades Union Congress (TUC) conference, poised to amplify existing tensions between the leadership of Keir Starmer and the union factions.
The timing of this proposal coincides with preparations for the Chancellor Rachel Reeves’s first budget, and it has the potential to disrupt the current unwritten accord between Labour and trade unions that was pivotal to Starmer’s electoral triumph. Labour’s focus on economic responsibility heightens internal pressures to meet these urgent socio-economic demands.
The proposed levy would apply to a broad range of assets including properties, shares, and bank balances, although properties under mortgage would remain untaxed. Unite calculates an annual return of £25 billion, intended to underpin public utilities and avoid austerity reimplementation. For instance, an individual possessing £6 million in assets would incur a tax on the £2 million that surpasses the threshold.
Notably outspoken, Unite’s General Secretary, Sharon Graham expressed unequivocally, “Unite’s resolution to the TUC on the economy calls things by their real name. The British economy is broken.” Graham advocates for substantial investment within public amenities and industries, asserting it as crucial for a thriving future for British workers and their communities.
This stance echoes across various unions. The RMT (transport union) also champions a wealth tax for public funding, and Usdaw (shop workers’ union) is advocating for the dismissal of the two-child benefit limit. Simultaneously, the PCS (civil service union) criticises cuts to winter fuel allocations and demands stricter taxes on affluent entities. As the conference nears, Labour’s leadership will likely encounter escalating pressures to reconcile fiscal stewardship with the pressing needs of its traditional supporters.
The upcoming TUC conference is therefore poised to be a significant stage for testing the balance between fiscal policy and social investment demands.
