Raise capital gains tax, trades union boss urges Starmer

Paul Nowak, general secretary of Trades Union Congress, also indicates that he will push for above-inflation pay rises

The leader of Britain’s trades union movement has called for an increase in capital gains tax, adding to pressure on the Government to make the move in the Budget.
Paul Nowak, the general secretary of the Trades Union Congress (TUC), also indicated that he would push for above-inflation pay rises in the years ahead. 
His comments came in interviews before the TUC conference, which begins this weekend.
Sir Keir Starmer and Rachel Reeves, the Chancellor, are looking at ways to raise billions of pounds to fill a spending “black hole” left by the last Tory government.
They have ruled out increases in income tax, National Insurance and capital gains tax but have left open the possibility of wealth tax increases.
Mr Nowak argued for capital gains tax, which has rates as high as 28 per cent, to be brought in line with income tax, which has rates that go up to 45 per cent.
He told the New Statesman: “I was in Spain a couple years ago, talking to Spanish unions and the Spanish government about the solidarity tax that they’d introduced [on those worth more than €3 million]. There hasn’t been an exodus of wealthy people.
“I just think it’s crazy that the people who go out to work in a warehouse or a supermarket can pay a higher effective tax rate than someone who makes their income through shares or property. That to me just feels fundamentally unfair.”
In an interview with the Financial Times, he said the Government should award public sector workers “entirely legitimate” pay restoration deals, despite a tough economic backdrop, to make up for a decade of real-terms salary cuts.
Kevin Hollinrake, the shadow Tory business secretary, said: “Far from stopping the strikes, Labour’s no strings attached approach to paying off the unions will simply encourage more strike action.
“It is no surprise unions are saying they need inflation-busting pay rises after the junior doctors’ same arguments were rewarded with a billion-pound bung from the Chancellor. Taxpayers are fast approaching a doom loop of more strikes and higher payouts. Rachel Reeves needs to get a grip now.”