The Trades Union Congress (TUC) has urged Chancellor Rachel Reeves to consider new forms of wealth taxation in her first Budget this November, arguing that the move could raise vital funds for public services and show that the Labour government is serious about delivering change.
Push for Fairer Contributions
Paul Nowak, the TUC’s general secretary, said the public wanted evidence that the government was prepared to act decisively. He argued that wealthier individuals and big businesses should shoulder a greater share of the tax burden, highlighting record bank profits and windfall gains in parts of the financial sector.
“We need a progressive tax system,” Nowak told the BBC. “That means looking at online gaming and gambling companies, taxing excess profits in the banks, and even considering a broader wealth tax. Spain has shown this can work alongside strong economic growth.”
Among the options Nowak wants on the table are aligning capital gains tax with income tax and introducing fresh levies on industries that have benefited most from the current economic climate.
Treasury Sticks to Current Line
The Treasury has pointed to Reeves’ previous comments that Labour has “got the balance right” when it comes to taxing the wealthy. The chancellor has already moved to raise taxes on second homes, private jets and capital gains. Reeves has signalled caution about wider wealth taxes, stressing that any further changes would be announced through the usual Budget process.
Balancing Growth and Revenue
While unions believe banks can afford to pay more, senior figures in the financial sector have warned that extra taxes could backfire. Lloyds Bank boss Charlie Nunn has previously argued that further tax rises would undermine efforts to strengthen the UK economy and discourage investment. Similar proposals from think tanks have also caused nervousness in the markets, with share prices dipping when higher banking levies were floated.
Nowak, however, rejected suggestions that wealthier individuals would flee the UK, pointing out that changes such as ending non-dom status and adding VAT to private school fees had not triggered an “exodus of millionaires.” He added that polling commissioned by the TUC showed support for wealth taxes, particularly among voters who have shifted from Labour to Reform UK.
Political Stakes Rising
The call comes just as Labour prepares for a politically sensitive Budget. Reeves is bound by strict fiscal rules, which means new spending will almost certainly have to be matched by higher taxes. The key question now is who will be asked to pay more.
Nowak warned that Labour risks losing trust if its promises of change fail to materialise. “There’s a real danger that people become disillusioned if they don’t see progress,” he said. “That’s when parties like Reform start to fill the gap.”
Inside government, some are quietly hoping that Baroness Shafik, the prime minister’s new economic adviser and an advocate of wealth and land taxes, may help open up space for a wider debate.
“A Grown-Up Conversation”
For Nowak, the issue is about honesty with the public. “People understand the challenges we face,” he said. “What they want is a grown-up conversation about how we pay for decent public services—and that means looking at wealth.”
With the Budget just weeks away, the pressure on Reeves is mounting to decide whether Labour will stick with modest reforms or take a bolder step on taxing those with the deepest pockets.
