Wealth boost of richest families could fund pay increase, says STUC

The increase in wealth of Scotland’s five richest families in the past year would be enough to fund a 10% pay rise for every public sector worker in Scotland, the STUC has said.

According to the Sunday Times Rich List, the top five increased their wealth by around £2.3 billion in 2022.

Included in the list is Asos owner Anders Holch Povlsen, alcohol businessman Glenn Gordon and his family, oil boss Sir Ian Wood and family, Harrods owner Mohamed Al Fayed and his family, as well as Highland Spring owner Mahdi al-Tajir – with a total wealth of £18.2 billion.

The top five, according to STUC general secretary Roz Foyer could pay for a 10% pay rise for the roughly 595,000 public sector workers in Scotland, and still have £500 million left over.

Following the release of the rich list last week, the group that represents Scottish trade unions has reiterated its calls on the Scottish Government to revamp the tax system.

First Minister Humza Yousaf said during the SNP leadership race he would look at the STUC’s proposals – which included the introduction of a new band for those earning more than £75,000 a year and the increase of two highest tax rates.

Ms Foyer said: “The money accumulated by just five families in the past year alone shows the inherent obscenity in the amount of wealth that resides in Scotland.

“It cannot be right nor fair that so much is accumulated by so few.

“While hundreds of thousands across our country are struggling to feed their families and heat their homes, five very wealthy families sit upon an £18.2 billion empire.

“They’ve made so much that they could still bank a cool £500 million whilst fully funding a 10% public sector pay rise for Scotland’s workers.

“The findings of our Fairer Taxes paper released last year could not be more appropriate now.

“The power to fund our public services through targeting the clear, unchecked wealth that exists in Scotland lies squarely with the First Minister and his government.

“We hope he makes good on his pledge to look at our tax proposals, including introducing a wealth tax targeting the mega-wealthy, ensuring those at the top pay their fair share for the public services we all rely on.”

A Scottish Government spokesperson said: “The Scottish Government is proud to have the fairest and most progressive tax system in the UK. Changes to income tax in Scotland came into force last month and are estimated to raise more than half a billion pounds of additional revenue this financial year to support vital public services.

“This progressive system has helped strengthen our social contract with every citizen in Scotland which goes significantly beyond provision in the rest of the UK – including free prescriptions, free access to higher education and the Scottish Child Payment.

“As the First Minister previously set out to parliament, we will engage with the public to explore how we can use existing tax powers to achieve the Government’s three key missions of equality, opportunity and community. During the summer, the Deputy First Minister will convene an advisory group of people from outside Government to discuss tax strategy in the lead up to the Scottish Budget for 2024-25.”