Let's get more on the economic challenges that face Britain's next Prime Minister, can Andy Burnham, who looks set to take over from Keir Starmer, help Britain escape weak activity, high debt and elevated boring costs. Joining us now as Paul Novak, General Secretary of the Trade Trades Union Congress. The TU see the umbrella body for dozens of trade unions, many of whom are affiliated with Labour. Good to speak to you again.
Paul, morning, Carolyn, good to speak to you.
Been speaking to the British Chambers of Commerce this morning. Obviously they represent business. They've got a lot of the leaders that Rachel Reeves speaking to them today. They employ millions of people in Britain. The BCC boss says that increasing taxes for business is will be a road to ruin. But you do want more support for voters. What do you want to see from potentially Andy Burnham if he does become PM.
Well, whoever is our next Prime minister. Andy Burnham at the moment is the only candidate. I want them to show from day one that they're on the side of working people, their families and communities, and to set out an ambitious program on that first one hundred days of a labor government about what they're going to do. So, yes, get our economy growing, but get our economy growing in a way that puts pockets in the money in the pockets of working people. So there are lots of things.
I've got a long list of suggestions Karen on but just on that issue around tax I mean, so, for example, we think it's important that you know we've we've got a fully costed plan for the government to introduce a social tariff on energy bills. Now hard to think on a daylight today where the sun is cracking the flags about the cost of heating, but we know in the autumn and winter, because of that conflict in Iran, lots of people are going to see big spikes in the bills.
So support for low middle income households. How can you pay for that? We think an increase in the bank seur charge to bank levy on windfall profits can help the government do that. I think that would be the right thing to do to support families. I think it would help bring down inflation, and frankly, I think Britain's banks can afford it because they've been doing very well over the course last eighteen months two years, because we've
been in a relatively high interest rates environments. So they're the sort of policies I think they could make a massive difference to millions of people from down the country.
We spoke to. When we spoke to the BCC, they said they wanted to have a discussion about the Employment Rights Act to make sure it works for business. Are you worried about elements of that Act being rolled back?
Well, I think it would be real mistake for the government to roll back on the Employment Right Sack then, and we've seen it already. I mean, I think the new Prime Minister will have a short honey moon period and there will be a lot of vested interests making the case for, you know, change this or that, and there will be some dodgy bosses out there who don't
want to see improvements and employment rights. Now, where I would agree with the British Chambers of Commerce is that there's going to be a lot of change as a result of the Employment Rights Act. I think there's a responsibility on government to work with unions and employers to help employers understand those changes. But fundamentally this is about
making work pay for millions of working people. So whether that's giving a million people on zero hours contracts the right to guaranteed hours, whether that's making sure that people have access to sick pay, to flexible working, We're very clear this is a packaging measures that's good for working people. The government itself is clear that this could deliver a thirteen billion pounds boost of the UK in terms of productivity, and I would ask employers to get on board with
that agenda and final point on that. Our post election polling was very clear, it doesn't matter whether you voted reform at the last election. Labor, Green, conservative people support improvements in employment rights and I would hope that employers would respect that.
Okay, a bank tax would be an absolute bombshell. But you know Jamie Darmond, if you look at him JP Morgan chief. He has directly told Bloomberg recently that if there were to be an increase in terms of taxes on banks that JP Morgan would scrap plans to invest billions in a new London headquarters in Canary Wharf. He said specifically that JP Morgan, in his words, we paid probably ten billion dollars in extra taxes by now I
don't think that's right or fair. What would that mean an extra bank tax if a major global bank were, you know, not to progress with you know, investment in London in the UK.
Well, I'll be honest with you, Krol and I take those comments with the pinchers of salt. I mean the toy has reduced the bank SAT charged by three percent three years ago it is now. I think, at the very least, considering those windfall profits of the banks and making the government should reverse that. But I think they can go further. I mean the Tories themselves putty thirty five percent levy on the win for profits of the energy companies, and we're in a similar situation now with banks.
And I would say to JP Morgan and everybody else, reflect on the fact that last year was a record year for bonuses in the City of London, twenty four billion pounds handed out. At the same time, one in three people were worried about taking on the heating because they're heating bills. One in five was skipping meals because they can't make ends meet. We need an economy that works for everybody, not just those at the very top. And I think that those at the very top have
done well over the last few years. They haven't been through a cost of living crisis. Millions of families have, so I think and incoming prime minister has got to be prepared to take on those vested interests and show who side they'rerong.
Okay, but is Bernham really going to deliver that? Has he not lost the supportive unions? United Sharon Graham, for example, doesn't want the Energy secretary you know, Edmitt Abound to become chance that has Burnham actually lost union support? Is he in danger of losing your union support if he doesn't, you know, come up with those all of those measures that you want to see delivered quickly.
No, No, I mean as I say, I mean, were we yet to say if any other candidates declare, I'm very clear if it's Andy Burnham or anybody else, we want to work with the new prime minister to deliver the change that people voted for back in July twenty twenty four. I think we've got an opportunity now to really reset things and really show working people that they're on the government is on their side. You know, there's a lot of disillusionment with politics. I mean that same
post election. Pollar talked about before when you ask people who which party is best at sorting the fundamental problems like getting the economy back on track, that don't know's beat to any particular party at the moment. There's a lot of lack of faith in the political process and that's why I think any Petian just needs to nail coldorus to the mast. Who side of you're on, and my answer very clearly and unequivocally should be on the side of working people.
Are you then concerned or what's your view on the people who are advising Andy Brown on as economic policies. There's a whole list of them that have been reported, the likes of Andy hal Dane Jim and Neil Karis Roberts.
Yeah. No, Well, I think a lot of those people who have got really good qualities and we've done a lot of work with them, and I'm not going to advise Andy on who he appoints as economic advisors, or Andy or any future prime minister or indeed their cabinet members. I mean, that sort of fantasy politics isn't isn't my job. Whoever's doing those key jobs, whether it's Prime minister, Chancellor, secretary,
of State for Business and Trade. We want them sort of setting out an agenda where where people can see this is going to make a difference to me and my family, This is going to put more money in my pocket, and that that's absolute essentially, because if you want a growing, sustainable economy, where can people need money in their pockets? And for far too many people household budgets are squeezed, work is insecure. I think the government's got an opportunity to do something about that.
Yeah, okay, not the vested interest that you're concerned about, No.
Yeah, yeah. It's no surprise, Carol, that social media billionaires will rail against any efforts to raise wealth taxes and dodgy bosses will oppose any improvements in employment rights because that's what they did with the minimum wage, and that's what they've done with every single progressive change in employment law. The new Prime Minister just has to be clear who side they're on and nail the colors to the mass on day one.