TUC Advocates for Wealth Taxes Consideration by Rachel Reeves during November Budget Discussion

The debate around wealth taxes in the United Kingdom is gathering momentum as Chancellor Rachel Reeves prepares for her second budget speech on November 26. The Trades Union Congress (TUC) has urged Reeves to consider a package of wealth taxes in the autumn budget.

Paul Nowak, TUC general secretary, has argued that there is strong voter backing for wealth taxes, as indicated by union polling. He has suggested a tax on online gaming companies, gambling companies, and windfall profits of banks and financial institutions. Nowak emphasises the need for a "grown-up conversation" about the difficult choices involved in implementing wealth taxes.

Reeves faces a funding gap estimated at up to £40bn in balancing Labour's fiscal rules. With the prime minister insisting that these rules are "non-negotiable," tax rises in November appear increasingly likely.

Within the Labour movement and Downing Street, key figures demanding a tougher stance on taxing wealth assets include SPD chairman Lars Klingbeil, who advocates tax increases for high earners and wealthy individuals, although he faces resistance from coalition partners. The Juso leader Philipp Türmer opposes social benefit cuts, and broader calls within the left for a "radical justice boost" require the wealthy to contribute significantly more.

Baroness Minouche Shafik, a senior economic adviser to the prime minister, has previously called for higher taxation on wealth and land. Nowak points out that Britain has not experienced an "exodus of millionaires" after reforms to non-dom status and VAT on school fees, suggesting that taxing banks more heavily would not spook investors.

Reeves has resisted demands for a broad-based wealth tax, but has pointed to recent moves to tax private jets, second homes, and capital gains as evidence of asking more from the wealthy. Nowak warns that Labour may lose voter support if it fails to act decisively, potentially driving support to Nigel Farage's Reform UK party.

The choice between relying on wealth taxes or other measures will be seen as a key test of Labour's credibility on both fairness and fiscal discipline. Nowak stated that a profitable banking sector can still pay its fair share in taxes, with Britain's "big four" high street banks making £46bn in profits in one year, according to Nowak.

As the debate intensifies, it remains to be seen how Reeves will address the calls for wealth taxes in her upcoming budget speech. The TUC's proposal includes a conventional wealth tax, equalizing capital gains tax with income tax, and higher levies on banks and financial institutions. The TUC's push for wealth taxes could signal a significant shift in UK tax policy, should it be adopted by the Labour government.

TUC Advocates for Wealth Taxes Consideration by Rachel Reeves during November Budget Discussion