Labour Party conference backs wealth tax to help workers

A motion calling for a wealth tax has been backed by Labour delegates following a vote at this year’s party conference.

‘Rebuilding our Economy for Working People’, also known as Composite Motion 11, was moved by Unite and seconded by the Union of Shop, Distributive and Allied Workers (USDAW). It called for an “introduction of a wealth tax”, a windfall tax on banks and a “cut in household and industrial energy bills paid for by the profits of the big energy firms”.

In a brief speech to party conference today ahead of motions seven and 11, Unite General Secretary Sharon Graham said there is a need for “real, transformative change that everyday people can feel and they can touch”.

The motion demands the”scrapping the unfair stealth tax to end the freeze on tax allowances to put more money into workers and pensioners pockets”. Further specifics on the “stealth tax” were not included in the motion, but Unite has previously urged restoring the tax-free personal allowance to under £14,000 and putting the 40% threshold to £55,000.

Ms Graham continued: “Everyday people are asking, why is it ok that at the same time we’re told a wealth tax is ‘unworkable’, nurses, midwives, teachers, train drivers are being asked to pay 40% tax? Why is it OK that those on the state pension and Universal Credit are being pushed into a 20% tax band, while the elites are taking absolutely no responsibility? Where is the justice in that?”

Also included in the motion were calls to bring together the Royal Mail and Post Office under one body again. The Coalition Government led by David Cameron separated the two in 2012 before the final Royal Mail shares were sold off by the then-Tory Government in 2015.

Unite recommended “developing a new ownership and governance model for Royal Mail, with democratic public control and oversight and worker and customer representation”, as well as implementing the recommendations in the House of Commons Business and Trade Committee’s report in May this year. The committee had found that Royal Mail’s performance was “not acceptable”.

Speaking in favour of the motion, Dave Ward from the Communication Workers Union (CWU), said postal workers in the UK “desperately want to deliver quality service in every postcode”.

A range of further measures in the document, also known as Composite Motion 11, included “boosting public investment by at least 1% of GDP”, overhauling public procurement rules, reforming business rates for bricks-and-mortar retailers, a single status of worker and sectoral collective bargaining and “taking action” on energy costs for businesses.

Significant focus on the retail sector was also apparent, amid ongoing strain felt by the industry. The motion encouraged the development of an “industrial strategy and skills plan for the retail sector”.

Motion 11 had been brought forward as one of six topics backed by affiliate delegates and approved during yesterday’s priorities ballot. Six separate topics were brought by Labour CLP delegates.

LabourList has contacted the Treasury for comment.

Today, John Healey outlined a “new age of industrialisation” for Britain in his first speech to party conference as Chancellor.

All 12 motions at this year’s conference were carried.

The full list of topics selected was as follows:

CLP list:

• Housing
• Violence against women and girls (VAWG)
• Buses
• Tackling knife crime
• Reindustrialisation
• Fairness for older workers

Affiliate list:

• Opportunities for young people
• AI in the interests of working people
• Reindustrialising our communities
• Insourcing and public ownership
• Public services
• Rebuilding our economy for working people

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