Peter Lazenby
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FINANCE experts have drawn up a wealth tax blueprint which could solve the cost-of-living crisis and mean a pay rise in line with inflation for every public-sector worker.
Public-sector union Unison commissioned an economic analysis by independent experts.
It would include a 1 per cent tax on household wealth above £5 million and would raise £30.85 billion which would tackle the crisis and fund the public-sector pay rise.
Labour MP Jon Trickett welcomed the proposal and said the cost-of-living crisis was in fact a “greed crisis” caused by the huge accumulation of wealth for a small minority since the Conservatives came to power 12 years ago.
The Unison report calls for a 1p increase in both the higher and additional rates of income tax which would yield £1.65bn. Increasing capital gains tax rates to match those for income tax would raise a further £8bn.
The report also highlights public backing for a decent pay rise for public-sector workers.
Unison is leading a “Together We Rise” campaign demanding urgent action to tackle the economic crisis. The campaign also calls for a £15-an-hour minimum wage, which would take millions out of in-work poverty.
Mr Trickett said: “There needs to be a wealth tax. Wealth has taken off like a rocket under the Conservative government.
“The whole country is paying the price not for a cost-of-living crisis but for a greed crisis.
“A wealth tax is the way to solve this crisis.”
Unison plans to take the proposal to the incoming Prime Minister.
Unison general secretary Christina McAnea said: “The financial crisis is nothing short of a disaster for public-sector workers.
“The real value of their income has plummeted, leaving them struggling to deal with rising prices. It’s clear that without help, many may never recover.
“The incoming prime minister must make it a priority to help people such as hospital porters, teaching assistants and other poorly paid public-sector employees through the cost-of-living crisis.
“This isn’t the time for pay freezes or tax cuts. The government must put struggling families first and provide a wage rise in line with inflation or above becomes a reality.”
