‘The government has a decision to make, it either sides with billionaires and multi-millionaires, or it taxes their riches to make life better for the rest of us.’
Ahead of tomorrow’s spending review, unions have been piling pressure on the government to introduce progressive tax reforms that could boost funding for public services.
Polling published by the Trades Union Congress on Sunday reveals that a majority of the public (54%) back taxing big corporations and the most wealthy individuals to prevent cuts to public services.
The poll found that 59% of people do not think that the wealthiest pay their fair share of tax. In addition, two-thirds (67%) of voters said they supported an annual wealth tax for estates above £10m and 63% back a windfall tax on banks.
Paul Nowak, the general secretary of the TUC said: “The message from voters is clear. They want the government to protect and rebuild our public services.
“If that means asking the wealthiest to pay more, the public are behind it. People are fed up with a system where those with the broadest shoulders don’t pull their weight.”
The National Education Union has joined in the calls for a wealth tax, teaming up with Tax Justice UK to push for fairer taxation.
The union is backing three Tax Justice UK proposals to raise funds by closing unfair loopholes and introducing credible, achievable tax reforms.
These include a 2% wealth tax on assets over £10 million, which would affect just 0.03% of the population but could raise at least £24 billion a year.
The NEU is also calling for Capital Gains Tax to be reformed to equalise it with income tax and close loopholes, which could generate around £12 billion a year.
They’re also calling on the government to end and redirect subsidies for oil and gas companies to invest in retrofitting schools, which could raise £2.2 billion a year.
Government funding decisions have resulted in 70% of maintained schools in England facing real-terms cuts since 2010/11.
The NEU is calling for education to be funded at 4.5% of GDP, roughly a £14.1 billion real terms increase over three years.
Daniel Kebede, General Secretary of the National Education Union, said: “Our schools are at breaking point, with cuts leading to fewer resources, larger class sizes, and the erosion of subjects that are crucial to a well-rounded education.
“Now is the time for a wealth tax, and closing unfair loopholes to ensure the very richest pay their fair share. Instead of picking the pockets of our pupils, it’s time to tax profits and prioritise our children and our communities over corporate greed.”
Kebede added: “The Chancellor has a clear choice to make at this Spending Review – tax wealth to invest in public services or continue on a trajectory of austerity 2.0.”
Caitlin Boswell, Head of Advocacy and Policy at Tax Justice UK said: “Taxing extreme wealth is a textbook example of how to raise revenue to invest in key services we all rely on, like education. The government has a decision to make, it either sides with billionaires and multi-millionaires, or it taxes their riches to make life better for the rest of us.”
Olivia Barber is a reporter at Left Foot Forward
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