Paul Nowak, the General Secretary of the Trades Union Congress (TUC), has called for an increase in taxes on the wealthy to address social inequalities and assist pensioners who will be affected by the upcoming cuts to the winter fuel allowance. In a statement ahead of the TUC’s annual conference in Brighton, Nowak expressed significant concerns about Chancellor Rachel Reeves’s recent decision to means-test the winter fuel payment—a vital support for millions of pensioners during the colder months.
Nowak highlighted the financial challenges faced by pensioners who slightly exceed the means test threshold, suggesting that the government’s plan could push them into financial hardship. He advocated for targeted assistance in the next month’s budget to prevent this vulnerable group from suffering unduly.
Addressing broader fiscal policies, Nowak urged the Labour government to reconsider the tax structure to ensure fairness and equity. “There’s a huge set of challenges…the Chancellor has to think about in the round,” he stated, adding that the government should ensure that “those with the broadest shoulders are expected to do the bulk of the heavy lifting.”
The TUC leader’s comments come after Keir Starmer’s caution last week about the “painful” decisions necessary to address the £22 billion deficit in public finances left by the previous Conservative government. While Labour has committed to not raising taxes on working people, there has been no explicit ruling out of increasing wealth-focused levies, such as inheritance tax or capital gains tax.
“People who go to work in supermarkets or in warehouses or in schools, shouldn’t be paying a higher rate of tax than someone who gets their income through shares or through property,” Nowak argued. He suggested that aligning these tax rates could generate significant revenue, which is “desperately needed for our public services.”
Nowak also praised the recent public sector pay increases, viewing them as a positive step towards enhancing public services and acknowledging the efforts of hard-working staff. Although these increases are not seen as a final solution, they represent a significant shift from the policies of the previous government and have substantially improved morale, according to Nowak.
As Labour navigates the complex landscape of fiscal responsibility and social equity, Nowak remains optimistic about the government’s direction: “We’ve got a real opportunity to make work pay, to rebuild our public services, to improve the quality of work,” he concluded.
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