Union leaders intensified pressure on Prime Minister Keir Starmer on Monday, calling for a new wealth tax, higher benefit payments and full delivery of planned workers' rights as Labour faces internal dissent and external political challenges.
TUC general secretary Paul Nowak used the union federation's annual congress in Brighton to demand a windfall tax on bank profits and gambling companies, abolition of the two‑child benefit cap and protection for the Employment Rights Bill, saying the government must “deliver the manifesto on which you won a huge majority last July.” Nowak also said boosting jobs and living standards was central to rebuilding communities affected by low pay and insecure work.
The intervention came after a significant government reshuffle last week following the shock resignation of Angela Rayner. Rayner, the former deputy prime minister and housing secretary, had been leading the Employment Rights Bill, which would extend new workplace protections. Several ministers closely involved in the bill, including employment rights minister Justin Madders and business secretary Jonathan Reynolds, left their roles in the reshuffle.
Unite general secretary Sharon Graham reiterated a threat to withdraw millions in Labour funding unless the party pursues what she described as a leftward agenda, including keeping the Employment Rights Bill intact. Speaking to media outlets, Graham said that members and workers felt the party was moving away from the priorities that had secured its election and warned of political consequences if commitments were diluted.
Labour insiders say the reshuffle signalled a shift toward the centre‑right as the prime minister seeks to prioritise economic growth and address concerns about business burdens, including measures related to the Net Zero transition. New Work and Pensions Secretary Pat McFadden is reported to be preparing further efforts to reduce benefits spending after an earlier attempt was blocked by Labour MPs.
The congress interventions also came amid heightened industrial tensions. London Underground workers began a five‑day strike in a dispute over pay, disrupting the capital's transport network. Union leaders linked workplace campaigns to the broader call for stronger employment protections and higher living standards.
Labour's internal politics have also been in flux. A new centre‑left grouping within the party, called Mainstream and backed by Greater Manchester Mayor Andy Burnham, has called for scrapping the two‑child benefit cap and introducing a wealth tax. Burnham described the party as unusually factional and urged a broader approach to policymaking.
The spectre of electoral competition from Reform UK and its leader Nigel Farage also featured in union remarks. Nowak said reversing austerity‑era trends and improving pay and rights would help reclaim communities that, he said, were being courted by populist movements.
Conservative figures criticised the unions' demands. Tory leader Kemi Badenoch described the Employment Rights Bill as “job‑destroying” and said it would impose excessive costs on firms, citing government analysis. She urged Starmer to prioritise economic growth and to drop what she called burdensome measures on business.
The Employment Rights Bill has been contested in public debate. Supporters argue it will extend basic protections for workers, including rights from their first day in a job, and curb practices such as fire and rehire. Critics warn it could increase industrial action and raise costs for employers. Union leaders at Brighton called on the government not to water down the legislation amid ministerial change.
Labour's leadership faces a balancing act: placating unions that provided significant backing during the party's election victory, while reassuring businesses and centrist voters concerned about growth and regulation. Starmer's government has framed the reshuffle as a reset to deliver economic stability, but union leaders said that addressing inequality and delivering manifesto commitments remain the pathway to rebuilding communities hit by insecure work.
As the party navigates these tensions, union officials signalled they would continue to press for specific policy moves — including targeted taxes on profits and wealth — and for tangible improvements in public services and pay. The outcomes of those discussions are likely to shape Labour's domestic agenda and its position ahead of future electoral tests.