Union chief calls for a tax squeeze on the top earners

Britain's top union chief called yesterday for tax hikes on the rich to finance pay rises for six million public sector workers.

Brendan Barber claimed big business and top earners were dodging tax to the tune of £25billion a year.

He said that diverting only a quarter of that to nurses, teachers, police and civil servants would allow wage increases to keep pace with inflation, currently at around three per cent.

The TUC general secretary made his call as the biggest health union Unison voted to accept a Government pay package worth eight per cent over three years.

The unions are placing increasing demands on Gordon Brown in return for rescuing the Labour Party from financial meltdown.

Labour is mired in debt with almost £7.5million in loans up for repayment by the beginning of July and a further £6million due by Christmas.

The trade unions, which have almost quadrupled their support in the past six months, are helping to stave off effective bankruptcy.

Their growing influence has been evident from policy decisions on flexible working and improved rights for agency staff. The Prime Minister has pegged most public sector pay deals to below-inflation levels in a bid to keep the lid on soaring prices.

Union anger has been fuelled by the record City bonuses of £12.6billion in the first three months of this year.

Mr Barber said public sector workers were 'being asked to make a major sacrifice while there is no such appeal for restraint in any other part of the economy.

'Indeed, people at the top end, their rewards have been spiralling at an astonishing rate with enormous reward packages being paid.'

Mr Barber said: 'I want to see the Government prepared to say to corporate Britain and to the wealthiest, you have got to pay a fair share to all the services and benefits that this country a year delivers.'

Unions will hold a rally in Westminster on Monday to lobby Parliament for more pay.

A Downing Street spokesman said last night: 'It is very important to maintain a disciplined approach to public sector pay.

'Today's three-year pay deal for nurses means that 1.5million public sector workers have now agreed to multi-year pay deals which will help the stability of the economy.'