Ditch ‘phony’ fiscal rules and tax ‘unearned wealth’, unions urge Starmer

Union chiefs launched a broadside at Sir Keir Starmer, describing the Prime Minister’s planned national wealth fund as “a joke,” urging him to tax “unearned wealth” and demanding he “ditch the phony fiscal rules”.

Speaking at the Trades Union Congress (TUC) conference on Monday – ahead of Sir Keir’s own address on Tuesday – union leaders called on ministers to “make different choices”.

It comes hours before the Labour government faces down rebels over a Parliamentary vote on means testing pensioners’ winter fuel allowance – one of Starmer’s first crucial tests of his authority.

Addressing delegates, Unite leader Sharon Graham argued: “”The top one per cent in Britain, just giving one per cent more would create 25 billion pounds. The so-called black hole gone.

We are the sixth richest economy in the world… we can and must make different choices.”

And she declared: “Labour must ditch the phony fiscal rules. They are self-imposed. These fiscal rules have been changed nine times since 1997. 

There is no gold badge for reducing our debt over one Parliament. That is a choice being made. So as we welcome Labour to power… we have to make them make it count.”

While Mick Lynch, boss of the Rail, Maritime and Transport Workers (RMT) union, echoed her demands, stating: “Taxing unearned wealth from the richest in society must be a goal for the trade union movement if we are to create the kind of country that works for the many and not the few.”

He added: “There is an urgent need for Labour to make immediate, significant investments in public services and infrastructure to restore living standards and secure sustainable economic growth. 

“We call on Chancellor Rachel Reeves and the Labour government to introduce a proactive industrial strategy that includes public ownership and investment in key sectors to promote long-term economic stability.”

Graham also called for major green investment, insisting: “We cannot be locked into a spiral of doom, too slow to invest, too cautious to grab the opportunity. 

“You look at Germany. They’ve got a green transition pot worth £580bn. And we’ve got a wealth fund of £7.3bn. It’s a joke… investment in British industry needs to start now.

The Treasury has been contacted for comment.