Head of Britain's trade union movement urges Rachel Reeves to set up new wealth tax to boost services
The head of Britain's trade union movement has urged Rachel Reeves to consider introducing a wealth tax at the Budget to raise billions for public services.
Paul Nowak called on the Chancellor to look at hitting those worth more than £10 million with fresh levies while hiking capital gains tax – insisting this would not lead to an exodus of the wealthy.
The General Secretary of the Trades Union Congress (TUC) also demanded that Ms Reeves slap a windfall tax on banks and increase levies on the gambling industry as she tries to fill a £50 billion black hole.
In a round of interviews ahead of the TUC's annual conference in Brighton next week, Mr Nowak told Ms Reeves 'not to take anything off the table' ahead of the crucial November 26 Budget and to consider 'a wealth tax'.
He said: 'I've seen first-hand the experience of the wealth tax, the solidarity tax in Spain and it raised billions of euros.
'It didn't lead to an exodus of millionaires or wealthy people from Spain, and Spain now has one of the fastest growing economies in the OECD. So I think it's a good example of a wealth tax in action.'
He also told Sky News: 'But it's not the only option the Government has. They could equalise capital gains tax with income tax.
'They could have a windfall tax on the banks and the financial institutions, who have got record profits. And they could tax the gambling industry much more fairly.'
The head of Britain's trade union movement has urged Rachel Reeves to consider introducing a wealth tax at the Budget to raise billions for public services
Paul Nowak called on the Chancellor to look at hitting those worth more than £10 million with fresh levies while hiking capital gains tax
Mr Nowak claimed there was 'overwhelming support' among voters from all sides for higher taxes on banks and the wealthy.
Polling for the TUC found that a 2 per cent annual wealth tax paid by those with assets worth more than £10 million would be supported by 68 per cent of Britons.
He said: 'The public overwhelmingly want investment to deliver better services across the country – whether it's cutting NHS waiting lists so patients can get the prompt treatment they need or funding schools so our kids have the right books and resources.
'They want fair taxes, too. People have had it with a system where those with the broadest shoulders don't pull their weight.
'The public are behind tax reform so that the wealthy, banks and gambling companies pay more.' Mr Nowak is the latest figure on the Left to urge Ms Reeves – who has ruled out increasing income tax, VAT or National Insurance – to introduce a wealth tax. No 10's new economics guru, Baroness Shafik, has previously said: 'We should explore taxing wealth such as inheritance, land and real estate.'
Meanwhile, firms have been cutting jobs at the fastest pace in four years, a Bank of England survey has found. Employment levels were slashed by an annual rate of 0.5 per cent in the three months to August.
The figures indicate the labour market is being badly damaged by the Chancellor's £25 billion raid on employer National Insurance.
