Unite, Britain’s second largest trade union, plans to challenge the new Labor government by calling for an emergency 1% tax on the assets of the super-rich.
The proposal aims to fund substantial pay increases of 10% for public sector workers and fill more than 100,000 vacant NHS positions. The demand, set out in a motion for the Trades Union Congress (TUC) conference in Brighton next month, is expected to highlight growing tensions between Keir Starmer’s government and the trade union movement.
As Chancellor Rachel Reeves prepares to deliver her first budget on October 30, Labor MPs and ministers are preparing for possible friction at the TUC conference. The event could mark the end of an unofficial truce between many unions and Labour, which has been instrumental in supporting Starmer’s successful general election campaign. However, with Labour’s leadership emphasizing fiscal responsibility, pressure is increasing from within the party to address pressing social and economic needs.
Unite’s motion is particularly bold, suggesting that a 1% tax should be levied on the assets of individuals with a fortune of more than £4 million. The union estimates this would raise £25 billion a year, which could be used to strengthen public services and prevent a return to austerity measures. Under the proposal, someone with £6 million in assets would be taxed on the £2 million above the threshold, with the tax applying to properties, shares and bank accounts, although mortgaged properties would be exempt.
Sharon Graham, general secretary of Unite, did not mince her words in her criticism of the current state of the UK economy: “Unite’s resolution to the TUC on the economy calls things by their real names. The British economy is broken. We need serious investment in our crippled public services and industry to ensure a prosperous future for British workers and their communities.”
Unite’s position is shared by other major unions. The RMT transport union has also called for a wealth tax to fund public investment, while Usdaw, the shopworkers’ union, is seeking the abolition of the two-child limit. The civil servants’ union PCS has added its voice to the debate, advocating resistance to cuts to the winter fuel surcharge and calling for stricter taxes on companies and the wealthy.
These motions are expected to increase tension between Labor and its union backers, especially following recent wage deals between the government and striking workers in several sectors, including healthcare and transport. As the TUC conference approaches, pressure will increase on Labor to strike a balance between budgetary prudence and the demands of its traditional supporters.