Hot sectors in a tepid recovery
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FACTBOX-What UK unions want Labour to do for the economy
BRIGHTON, England, Sept 7 (Reuters) - Britain's unions say the Labour government needs to do more to stave off a painful recession, after the first part of Prime Minister Gordon Brown's economic rescue package failed to impress analysts.
The Trades Union Congress, hosting its annual summit, unveiled the following proposals on Sunday to help Britain through the downturn.
PUBLIC SECTOR PAY - Unions want the government to abandon its policy of pegging public sector pay to the official two percent target. The policy has already triggered several strikes as workers argue, with inflation running at more than four percent, that their pay is being cut each year in real terms.
Unions suggest pay could be pegged to the retail price measure of inflation, which is running at 5 percent.
TAX CUTS - The TUC wants a cut in value-added tax on property renovation to support the construction sector and have also suggested lower income taxes for low and average earners.
WINTER FUEL ALLOWANCE - The TUC is urging the government to boost the winter fuel allowance for the elderly to bring it in line with one third of the average fuel bill.
TAXES ON THE WEALTHY - A minimum tax rate on earnings above 100,000 pounds a year could raise as much as 5 billion pounds, the TUC says, arguing that it would close loopholes that allow many to avoid paying the full 40 percent tax rate.
The TUC suggests a minimum rate of 32 percent for earnings over 100,000 pounds, 37 percent over 150,000 pounds and 40 percent over 200,000 pounds.
WINDFALL TAX ON ENERGY FIRMS - Unions have called for a one-off tax on energy firms that have made big profits from higher oil prices. The TUC is also suggesting a policy of capping the prices utility firms charge.
GOVERNMENT BORROWING - The TUC says the government should be prepared to borrow more to support the economy and is urging finance minister Alistair Darling to raise the limit on public borrowing from 40 percent of gross domestic product. (Reporting by Matt Falloon; editing by Robert Hart)
