Sharon Graham, general secretary of the Unite trade union, leads steel workers down Whitehall last year to demand more support for the industry. She says the British economy is broken. Photograph: Guy Smallman/Getty Images
The demand from Britain’s second biggest union will test truce with Labour at next month’s TUC conference
Britain’s second biggest trade union is calling on the new Labour government to introduce an emergency 1% wealth tax on the assets of the super-rich to pay for 10% pay rises for public sector workers and fill more than 100,000 NHS vacancies.
The demand from Unite is in one of several motions to the Trades Union Congress, which meets in Brighton next month, that will expose tensions between Keir Starmer’s government and sections of the union movement. It comes as Rachel Reeves is preparing for her first budget as chancellor, on 30 October.
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Other key trade unions are preparing to press for further policy changes from Labour, including abandoning the two-child benefit cap, which Starmer has so far resisted, and the reversal of the recent decision to end winter fuel payments for millions of pensioners, which has been causing a serious backlash among Labour backbenchers.
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Unite’s plan is for a tax of 1% to be applied on the assets of those worth more than £4m, which it says would raise £25bn a year to fund investment in public services and avoid a return to austerity. Under the plan, someone with assets worth £6m would face a 1% tax on the £2m above the £4m threshold. These assets would include property, shares and bank accounts but would not include mortgaged property.
Unite points to research showing that the richest 50 families in the UK now have assets worth nearly £500bn.
Sharon Graham, the general secretary of Unite, said: “Unite’s resolution to the TUC on the economy calls things by their real name. The British economy is broken.
Chancellor of the Exchequer Rachel Reeves during a press conference following her statement to the House of Commons on the findings of the Treasury audit into the state of the public finances, July 29, 2024
Unite general secretary Sharon Graham calls for wealth tax
MORE austerity is on the agenda as Chancellor Rachel Reeves prepares a new clampdown on public spending in her autumn Budget.
In a move that risks sparking new divisions and struggle within the labour movement, Ms Reeves is set to prioritise reassuring global money markets over repairing the damage done by the Tories.
She is reported to have been spooked by figures showing public sector borrowing at £3.1 billion in July, £1.8bn more than a year previously and above most expectations.
However, borrowing has fallen over a longer time-frame, but Ms Reeves will pay more attention to the short-term figures and use them as a reason to impose more austerity.
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Unite general secretary Sharon Graham has called for a shift in priorities, saying: “We are the sixth-richest economy in the world, where the 50 richest families are worth £500bn.
“It is clear, irrespective of ‘black holes,’ that we need to consider a wealth tax.”
IT is no surprise that so many big business leaders have come out in support of the Labour Party.
It reflects two things. One is the banal fact that Labour looks like winning, and it does corporate leaders no harm at all to be able to say “I backed you at the election” when sitting down opposite ministers in a couple of months’ time to beg for assistance of one sort or another.
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Keir Starmer and shadow chancellor Rachel Reeves have bent over backwards to place themselves in the service of monopoly capitalism.
That has been reflected in their rhetoric, pledging the “most business-friendly government” in British history, which is a very high hurdle, but is a clear indication of their aspiration.
Sometimes this is extended by a commitment to be “pro-worker and pro-business” as if there were never a conflict between the two.
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As Unite’s Sharon Graham says, Labour’s New Deal for Working People now “has more holes than a Swiss cheese.” One can only hope that unions will be able to plug some of those gaps in Labour’s manifesto negotiations.
But the pro-capitalist turn goes much wider than safeguarding the bosses’ sacred right to exploit labour. It has permeated all aspects of the Starmer-Reeves approach.
The 120 signatories to the Labour-backing letter will have noticed that their corporation tax rate is not going to rise under Reeves.
They will have noticed that there is to be no wealth tax — of the kind Starmer once promised — under the impending Labour dispensation.
They will have noticed that outside a railway sector already under semi-control by the state, there is to be no extension of public ownership.
And they have noticed that despite the campaign slogan of “change” in fact Labour is offering nothing of the sort, but rather “economic stability.” That might have marked a point of divergence from the excitable Liz Truss but it hardly differs from Rishi Sunak, whose election boast is that he has restored — economic stability.
Water price hikes: we need a mass movement for public ownership
UNITE’S Sharon Graham calls the water industry “a symbol of the failure of privatisation writ large.”
She is right. The only reaction to water bosses’ announcement that they will raise prices above inflation from April should be a mass campaign for renationalisation now.
Water suppliers claim they need to raise bills because they are planning big investments to cut down on leaks. How dare they?
Since privatisation these crooks have paid out over £70 billion in dividends to shareholders, loaded the sector — debt-free when privatised — with over £50bn in debt and raised bills by over 40 per cent.
While milking the system for everything it’s worth they have neglected basic maintenance and repairs. In London and the south-east alone, water regulator Ofwat calculated last year that 600 million litres, equivalent to 270 Olympic swimming pools, are leaked from pipes every single day.
They have behaved with utter contempt for the environment, discharging untreated sewage into our waterways thousands of times. They have continued to pay executives millions even when fined for their illegal ecological vandalism.
THE director of public prosecutions is appealing to the Supreme Court to overturn the acquittal of two peaceful protesters for insulting Iain Duncan Smith.
Ruth Wood and Radical Haslam were charged over an incident in Manchester during the October 2021 Conservative Party conference at which both called the former work and pensions secretary “Tory scum” and Ms Wood added “F*** off out of Manchester.”
That their case even reached the High Court should have set alarm bells ringing over the creeping restriction of free speech in Britain. That court’s not guilty verdict was welcome, though its consideration of their motives for insulting Mr Duncan Smith was surely unnecessary: rudeness to a politician should not be considered criminal, end of.
A view of the Bibby Stockholm migrant accommodation barge following the death of an asylum seeker on board, December 12, 2023
THE tragic human cost of the Bibby Stockholm barge was revealed by MPs today as the Tories’ overspend on asylum accommodation landed taxpayers with an extra £2.6 billion bill.
Dame Diana Johnson said asylum-seekers were facing “claustrophobic” conditions that could amount to a breach of human rights after the home affairs select committee visited the Portland vessel.
The committee chairwoman wrote to illegal migration minister Michael Tomlinson to set out serious concerns about the wellbeing of asylum-seekers on the barge.
She said it was “disheartened to see some of the living conditions on the Bibby Stockholm” after finding “many individuals having to share small, cramped cabins (originally designed for one person), often with people (up to six) they do not know (some of whom spoke a different language to them).”
“These crowded conditions were clearly contributing to a decline in mental health for some of the residents, and they could amount to violations of the human rights of asylum-seekers,” she added.
The committee complained of “discrepancies” between the accounts of officials and asylum-seekers themselves, noting MPs received “inconsistent” information regarding access to GP services for those on board.
Mayor of North of Tyne, Jamie Driscoll, speaking at the Convention of the North, January 25, 2023
AN ELECTED Labour mayor who was barred by the party from standing in May’s mayoral election has launched his election campaign standing as an independent.
North of Tyne Mayor Jamie Driscoll attacked Labour leader Sir Keir Starmer in a packed community hall in Sunderland on Thursday night asking: “What if – it’s a general election year – Keir Starmer says, ‘here’s my 10 pledges’ – would you trust him to keep them?”
He criticised Labour MPs and other politicians who changed their positions each time a policy was altered by the leadership.
“The day I left the Labour Party was the day Labour said they would adopt the Conservative policy of the two-child benefit cap — a policy that plunged 250,000 kids into poverty at a stroke,” he said.
“And all those Labour frontbenchers – and Labour mayoral candidates – who’d said that policy was ‘heinous’ and ‘cruel’ changed their tune, and said, ‘ah, well, you know, public finances,’ and meekly swallowed the party line that it’s OK to keep children in poverty.
UNIONS called for an end to “rampant profiteering” as official figures showed food inflation remains at a painfully high 9.2 per cent in the run-up to Christmas.
Unite general secretary Sharon Graham said yesterday’s larger-than-expected drop in overall inflation would not offset the real-terms fall in wages this Christmas.
She said: “Headline inflation might be slowing, but workers know their wages aren’t going as far as they did two years ago.
“Even the competition regulator now admits what Unite has said all along: that firms have been exploiting the cost-of-living crisis to raise prices excessively.
“It’s time the government and Bank of England tackled the rampant profiteering in our economy to get inflation under control.”
Responding to the figures showing CPI inflation slowing to 3.9 per cent and RPI inflation to 5.3 per cent, TUC general secretary Paul Nowak added: “Today’s inflation figures will provide scant relief for hard-pressed families. Prices are still going up — just a bit more slowly.
“Household budgets remain under immense pressure. And many families will struggle with the cost of Christmas, with food and energy bills sky high.”
