A major wealth tax proposal is now on the table. The Trades Union Congress (TUC) is urging the chancellor to act. They want new wealth taxes in the November Budget. Consequently, this would boost investment for public services. TUC general secretary Paul Nowak spoke with the BBC. He said people desperately need to see evidence of change.
The TUC advocates for a progressive tax system. Specifically, they suggest a tax on online gaming companies. Additionally, they propose a tax on gambling firms. Moreover, they want a windfall tax on banks. Financial institutions saw huge profits recently. The Treasury quickly responded to these suggestions. They pointed to previous remarks from Chancellor Rachel Reeves. She believes the government already got the balance right.
Nowak insists the chancellor must not take anything off the table. He wants her to consider other options. One idea involves equalising capital gains tax with income tax. Another is the central wealth tax proposal itself. Nowak noted that other countries already use this tool. Spain introduced a wealth tax and now has a fast-growing economy.
Individual unions will likely make similar demands soon. The TUC’s annual Congress begins this weekend. Nowak focused particularly on financial institutions. He stated banks have record profits from high interest rates. He argues we can still have a profitable bank sector. However, they must also pay their fair share.
The prime minister reiterated a key point this week. Labour’s strict financial rules are completely non-negotiable. Therefore, tax rises seem inevitable for November. The chancellor faces self-imposed constraints on debt. The debate now centers on who to tax. It also focuses on how much to tax them.
Nowak highlighted the enormous profits of high street banks. The big four made £46bn in profits in just one year. Lloyds Bank CEO Charlie Nunn previously spoke out. He is against any potential tax rises for banks. He argues tax hikes are inconsistent with boosting the UK economy.
A left-leaning think tank recently suggested further taxing bank profits. Afterwards, share prices fell noticeably. Nowak was asked if this approach could scare investors. He said Britain remains an attractive place for international investment. He also noted there was no exodus of millionaires after recent tax changes.
The TUC’s own polling offers an interesting insight. Their data suggests a wealth tax proposal is popular with specific voters. It resonates most with those who switched from Labour to Reform UK. Nowak issued a stark warning to Keir Starmer. He said change still feels like a slogan, not a lived reality. There is a real danger of voter disillusionment.
Some in the wider Labour movement are pressing the chancellor. They want those with the broadest shoulders to pay more. Some union members are now hopeful. A new economic adviser is in Downing Street. Baroness Shafik has called for taxation on wealth and land before. This could mean the debate on tax is more open than ever.
Nowak concluded with a simple statement. The public are not daft and they know there are difficult choices. He said we desperately need a grown-up conversation. A Treasury spokesman reiterated the government’s top priority. It is to grow the economy first and foremost. Any further tax decisions will be made at the budget in the normal way.
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