Unite has proposed a 1% wealth tax on individuals with assets exceeding £4 million to fund significant pay rises for public sector workers and fill over 100,000 vacant NHS positions.
The motion, set to be discussed at the upcoming Trades Union Congress (TUC) conference in Brighton, comes at a critical time for Keir Starmer’s administration. With Chancellor Rachel Reeves preparing for her first budget on 30 October, this proposal adds to the mounting pressure on Labour to address urgent social and economic needs. Unite’s demand is poised to heighten existing tensions between the union movement and Labour leadership.
The proposed 1% tax targets assets such as properties, shares, and bank accounts, while exempting mortgaged properties. Unite estimates that this tax could generate £25 billion annually. Sharon Graham, Unite’s general secretary, has been vocal in her criticism of the current state of the UK economy, describing it as “broken.” She emphasised the need for serious investment in public services to ensure a ‘prosperous future for Britain’s workers and their communities.’
Support for a wealth tax is not isolated to Unite. Other unions, such as the RMT transport union and the PCS civil service union, are also advocating for additional taxation on the wealthy to fund public services. The RMT has called for similar measures to boost public investment, while the PCS is calling for more stringent taxation of corporations and wealthy individuals, as well as opposing cuts to the winter fuel allowance.
As the TUC conference looms, the implications of these proposals are clear. Labour’s leadership, which has so far maintained an unofficial truce with the unions, will need to navigate the delicate balance between fiscal prudence and the pressing demands from its supporters. This complex dynamic is set to test the cohesion within the party and its relationship with the union movement, especially in light of recent pay agreements between the government and striking workers across various sectors.
The call for a 1% wealth tax by Unite aligns with broader union demands for increased public investment. As Labour prepares for the upcoming TUC conference and its first budget under Chancellor Rachel Reeves, the party faces a crucial test in balancing fiscal responsibility with the urgent needs of public sector workers and the National Health Service.
