TUC general secretary Paul Nowak has called on Chancellor Rachel Reeves to slap wealth taxes on the richest Brits to prove Labour is on the side of ordinary people
Labour must slap wealth taxes on the richest Brits to prove it’s on the side of ordinary people, the head of the UK’s trade union movement has said.
TUC General Secretary Paul Nowak said Rachel Reeves must target the rich to restore a sense of fairness to voters who are struggling to make ends meet. On Wednesday the Chancellor announced she would deliver a Budget on November 26, when she is widely expected to have to hike taxes to balance the books.
Ms Reeves acknowledged the economy is “not working well enough” for ordinary people and promised a “tight grip” on spending amid market jitters over the state of the public finances.
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Pressure has been mounting on the Chancellor to impose a wealth tax, with senior Labour figures including former leader Lord Kinnock backing the call. The TUC proposes a package of taxes on wealth, banks and gambling companies to fund public services and rebuild Britain after years of Tory rule.
The plans, which include a windfall tax on bank profits, a 2% wealth tax on those with assets over £10million and higher taxes on online gambling, prove popular with voters, according to a poll.
More than 2 in 3 (68%) support the move, which rises to 78% among Labour voters considering switching to Reform UK. In an interview with the Mirror ahead of TUC Congress this weekend, Mr Nowak said: “For far too many people, change still feels like a slogan, not a lived reality.
“We’ll be pushing the Government to deliver the Employment Rights Bill in full and in advance of the Budget, if the choice is cutting public services or asking those with the broader shoulders to pay a fairer share, the public is very clear.
“The Government should have a grown up conversation about tax, crucially showing that with every decision they make they’re on the side of working people.” The top union leader said Labour had made good progress in getting a grip on NHS waiting lists, investing in public infrastructure, workers rights and stabilising the economy after years of Tory chaos.
“There’s lots to be positive about, but the Government has to prove it’s on the side of working people, and I think it can take a big step towards doing that in the Budget,” he said. Voters want to see public services protected after funding was slashed by the Tories, he said.
Labour must stick to its manifesto vow to protect working people from higher income tax, national insurance contributions and VAT, as well as protecting public services, he said.
“We need a tax system that reflects inequality, not just inequality in income but inequality in those who’ve got wealth and assets and those who haven’t,” he said.
“The fact is that those at the top have done really well over the last few years, despite the cost of living crisis where ordinary families have been battered. When you’ve got workers going out to work full time who are still reliant on food banks, it’s hard to ask them to pay more tax unless you’ve explored every other opportunity.”
Mr Nowak said the plan could draw a clear dividing line with Reform, which has been soaring in the polls after spending the summer stoking anger over migration. He said: “Nigel Farage says he’s on the side of working people and then votes against legislation that would give millions of people rights at work.
“He says he stands up for the little man but we know he’s on the same tax-cutting agenda for the super-rich that his mate Donald Trump is on in the White House.” He added: “Lots of people are disillusioned with our politics at the moment, people like Nigel Farage are sowing division, creating that sense that Britain is somehow broken.
“I’m more optimistic than that. I think this country’s got a really bright future, but we really do need the Government to step up to the plate and deliver.” Ms Reeves is drawing up plans to make the economy work for ordinary people, with a focus on curbing inflation putting a strain on household budgets.
She said: “Britain’s economy isn’t broken. But I know it’s not working well enough for working people. Bills are too high, and you feel that you’re putting more in, but you’re getting less out. And that has to change.”
The later-than-expected Budget will let her prepare the ground for any tax rises, as well as announce a series of moves to drive up productivity – in the hope that the watchdog factors this into its forecasts. Ms Reeves wants to avoid a Budget on the scale of last year, which saw her unveil £40billion in tax rises to fund £70billion of public spending on things like schools and hospitals.
But U-turns on cuts to winter fuel and disability benefits, and rising borrowing costs have left her scrambling to make up the shortfall. The scale of the challenge was laid bare by the NIESR economic think tank last month, which predicted Ms Reeves was on course for a £41billion shortfall on her self-imposed rule of balancing day-to-day spending with tax receipts in 2029-30.
:: Hold Sway polled 5,024 British adults online for the TUC from 15-19 August.
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