London: Unite, Britain’s second-largest trade union, is urging the new Labour government to impose a 1% wealth tax on the assets of the super-rich. Targeting those with assets over £4 million, the tax aims to raise £25 billion annually to fund 10% pay rises for public sector workers and address over 100,000 NHS vacancies.
This proposal, part of a motion to be discussed at next month’s Trades Union Congress (TUC) in Brighton, is likely to highlight tensions between Keir Starmer’s government and sections of the union movement. Labour MPs and ministers are concerned that the TUC conference could signal a breakdown in the truce that has supported Starmer’s election campaign. As Chancellor Rachel Reeves prepares her first budget on 30 October, the government’s emphasis on fiscal responsibility may clash with union demands.
Unite’s general secretary, Sharon Graham, stated, “The British economy is broken. We need serious investment in our crippled public services and industry to secure a prosperous future for Britain’s workers and communities. We won’t get the money needed for that just by waiting for growth.”
In addition to Unite’s wealth tax proposal, other unions are preparing motions to press for policy changes from Labour. The RMT transport union advocates for a wealth tax to fund public investment, while Usdaw is calling for an end to the two-child benefit cap. The PCS civil service union is pushing to protect the winter fuel allowance and demands appropriate taxation of corporations and the super-rich to fund social security improvements.
The TUC is also expected to advocate for “pay restoration” to compensate for a decade of real-terms salary cuts for public sector workers. These demands are likely to further strain relations between Labour and its union supporters following recent pay deals in various sectors, including healthcare and railways.
MOST READ | Taliban’s latest decree bans women’s voices and faces in Public
