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Union group urges Rachel Reeves to consider wealth taxes

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Iain WatsonPolitical correspondent

BBC Paul NowakBBC

The TUC, the umbrella group for trade unions in the UK, is calling for Chancellor Rachel Reeves to consider a range of wealth taxes in November’s Budget to help boost investment in public services.

Their top official, general secretary Paul Nowak, told the BBC that people needed to see evidence of change.

“We need a progressive tax system – a tax on online gaming companies and gambling companies, a tax on windfall profits which the banks and financial institutions have seen over the last couple of years.”

The Treasury said the government’s number one priority was to grow the economy.

In the interview, Mr Nowak called for Reeves “not to take anything off the table” and look at other options including equalising capital gains tax with income tax and, he said, “a wealth tax itself”.

“It has been introduced in other countries including Spain, which has one of the fastest growing economies.”

Individual unions are likely to make similar demands when the TUC’s annual Congress gets under way this weekend.

Mr Nowak focused in particular on the case for levying more from financial institutions.

“Banks have record profits driven by a high-interest environment.

“We think we can still have a profitable bank sector and ask them to pay their fair share.”

The prime minister reiterated this week that Labour’s financial rules were non-negotiable.

So, to meet the chancellor’s self-imposed constraints on debt and borrowing, tax rises appear to be inevitable in November.

The debate in the Labour movement – and elsewhere – is over who to tax and by how much.

Mr Nowak argued that “the big four high street banks made £46bn in profits in one year alone”.

Charlie Nunn, the chief executive of Lloyds Bank, has previously spoken out against any potential tax rises for banks in the government’s Budget announcement this autumn.

He said efforts to boost the UK economy and foster a strong financial services sector “wouldn’t be consistent with tax rises”.

And when the left-leaning think tank the IPPR suggested further taxing bank profits, share prices fell.

Asked if this approach could make the markets jittery and potentially drive investors away, Mr Nowak said: “Britain is an attractive place for international investors” and he suggested there hadn’t been “an exodus of millionaires” after tax changes for non-doms and ending the VAT exemption for school fees.

He claimed that the TUC’s own polling suggested that introducing wealth taxes to fund public services was most popular among voters who had gone from Labour to Reform UK.

Nigel Farage’s party conference begins on Friday in Birmingham and Mr Nowak issued this warning to Keir Starmer: “Change still feels like a slogan not lived reality. There is a real danger if the government doesn’t deliver the change people want, they will become disillusioned with mainstream politics, and some will look for divisive alternatives like Reform.”

While the chancellor has been far from keen on a conventional wealth tax on assets, some in the wider Labour movement are pressing her to look at how those with “the broadest shoulders” pay more.

There is some hope that with a new economic adviser now ensconced in Downing Street and reporting to the prime minister, that the debate on tax is more open than before.

That adviser – Baroness Shafik – has called for taxation on wealth and land in the past.

“The public aren’t daft – they know there are difficult choices,” said Mr Nowak.

“We need a grown up conversation.”

A Treasury spokesman told the BBC that the government’s number one priority was to grow the economy and pointed to the chancellor’s words last month.

Rachel Reeves said: “We introduced increased taxes on private jets, on second homes and increased capital gains tax.

“So I think we’ve got the balance right in terms of how we tax those with the broadest shoulders. But any further decisions will be ones that are made at a budget in the normal way.”

McConnell: 'There’s certain similarities right now to the ‘30s'

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Sen. Mitch McConnell (R-Ky.) compared the modern-day political landscape to the pre-World War II era in the United States, pointing specifically to tariffs and foreign policy.

In an interview published Wednesday with a local Kentucky newspaper, the Lexington Herald-Leader, McConnell reflected on his storied career in the Senate as the Republican leader and said he decided to use these two years before he leaves public service to “focus on what I thought was the most important thing I might have an impact on, and that’s defense and foreign policy.”

“I think this is the most dangerous period since before World War Two,” McConnell said in the interview, which was conducted on Friday.

“There’s certain similarities right now to the ‘30s,” he continued, pointing to the Smoot-Hawley tariff bill in 1930, which he said is “widely believed by historians and economists to have taken the depression worldwide.”

President Trump has similarly issued sweeping tariffs on many U.S. allies and close trading partners. He has done so in an effort to strike what he views as better deals for America to offset trade imbalances. Members of his administration have also touted the revenue generated by the tariffs, which American consumers of foreign products pay.

McConnell also noted similarities between those who oppose U.S. intervention globally today and those who held similar views before America was drawn into the Second World War.

He also expressed concern that the U.S. isn’t sufficiently prepared for what appears to be a growing alliance between some countries that are antagonistic toward the U.S.

On the same day the interview was published, China’s Xi Jinping, North Korea’s Kim Jong Un, and Russia’s Vladimir Putin appeared in public together for the first time, as Xi hosted the others as guests for his military parade in Beijing.

“Those who were totally anxious to stay out of all of what was going on in Europe were called ‘America First.’ Sound familiar? So what do we have today? North Korea, China, Russia, Iran and Iran’s proxies. They’re very different kinds of countries, but they have one thing in common: They hate us,” McConnell said. “So, when you talk about preparedness, we’re not prepared like we should be.”

McConnell also warned against failure in Ukraine as the U.S. president seeks to broker a peace deal to end the war with Russia.

“With regard to Ukraine, what we need to do is avoid the headline at the end of the war, ‘Russia wins, America loses.’ It has huge worldwide implications,” McConnell said.

“And for those who are concerned about the money, I think it’s important to remember that about half of the money was spent in this country, including in Kentucky, (with) 38 states modernizing our own industrial bases. We’ve sent older weapons to Ukraine,” he continued.

McConnell, the longest-serving Senate leader in history, announced last year that he would step away from his leadership role and retire from the Senate entirely at the end of his term next year.

Analyst Report: Alibaba Group Holding Ltd

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Analyst Report: Alibaba Group Holding Ltd

Epstein accusers say they are compiling list of his associates

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Watch: Epstein survivors speak publicly outside US Capitol

Victims of Jeffrey Epstein have shared emotional accounts of sexual abuse as they spoke on the steps of the US Capitol and called for lawmakers to release more files about the convicted sex offender.

One of the women, Lisa Phillips, said the group had begun compiling a confidential list of Epstein associates who they say were involved in abuse.

“We will confidentially compile the names we all know were regularly in the Epstein world,” she said. “It will be done by survivors, and for survivors.”

The event was organised by US lawmakers who are calling for more files from the Epstein investigation to be released publicly.

During the two-hour news conference on Wednesday, nine female Epstein accusers detailed their experiences and abuse at the hands of the disgraced financier.

Ms Phillips urged the Department of Justice to release all the documents and information it has from the investigation, adding that many victims were afraid of repercussions if they went public with names themselves.

A lawyer for the accusers added that they were scared of being sued or attacked because “nobody protected them the first time”.

Marina Lacerda, speaking publicly for the first time, said she worked for Epstein from the age of 14 until she was 17, when the disgraced financier determined she was “too old”.

“I was one of dozens of girls that I personally know who were forced into Jeffrey’s mansion… in New York City when we were just kids,” she said.

“A friend of mine in the neighbourhood told me that I could make $300 to give another guy a massage,” Lacerda said, while becoming visibly emotional. “It went from a dream job to the worst nightmare.”

Watch: Epstein victim, Marina Lacerda, speaks publicly for the first time

Liz Stein, who sued Epstein and Maxwell and who now works as a survivor mentor and policy adviser, told the BBC that she spoke at the Capitol rally to “humanise survivors” because she was tired of them being ignored.

“It’s really important for us all to remember that this is a crime. It’s a crime of sex trafficking. This isn’t a political issue, but it’s being politicised because of the people involved,” Ms Stein said.

Annie Farmer, 46, said at the rally that she was taken to New Mexico aged 16 to spend a weekend with Epstein. Her sister was also flown there and reported the abuse, she said, but nothing was done.

“We still do not know why that report wasn’t properly investigated, or why Epstein and his associates were allowed to harm hundreds, if not thousands, of other girls and young women,” she said.

Chauntae Davies addressed a question about the relationship between Trump and Epstein, saying the sex offender’s “biggest brag forever was that he was very good friends with Donald Trump”.

“He had a framed picture of him on his desk, with the two of them,” she said.

Watch: “This isn’t a political issue” – BBC interviews Epstein accuser

Trump was friendly with Epstein, but said they fell out in the early 2000s because the financier poached employees from the spa at Trump’s Florida golf club.

“This is a Democrat hoax that never ends,” Trump told reporters in the Oval Office on Wednesday when asked about the nearby news conference.

He said “nobody is ever satisfied” with the files that have been released, adding that the call for more releases is a distraction from his record in office.

“Really, I think it’s enough,” Trump said.

On Tuesday evening, 33,000 pages and several videos were made public by the House Oversight Committee, which has subpoenaed the justice department and Epstein estate. Most of those, however, were already in the public domain.

The top Democrat on the committee, Robert Garcia, said: “Don’t let this fool you.

“After careful review, Oversight Democrats have found that 97% of the documents received from the Department of Justice were already public.

“There is no mention of any client list or anything that improves transparency or justice for victims.”

It is believed that the Department of Justice has about 100,000 pages of material on Epstein.

The release on Tuesday followed last month’s publication of the Department of Justice interview with Ghislaine Maxwell, a convicted sex-trafficker and accomplice of Epstein.

In the transcripts – which run to 300 pages, some heavily redacted – Maxwell said that while she believed Trump and Epstein were friendly in social settings, she did not think they were close friends.

Two members of the House, Republican Thomas Massie of Kentucky and Democrat Ro Khanna of California, are trying to force a vote on compelling the justice department to release all documents in the case.

They were gathering signatures on Wednesday and will need the support of 218 lawmakers to prevail. That means six Republicans must support the plan.

“It’s shameful this has been called a hoax. This is not a hoax,” Massie said. “There are real victims to this criminal enterprise and the perpetrators are being protected because they are rich and powerful.”

The White House and Republican congressional leaders oppose the release of all of the files, saying it could expose the identities of innocent people.

Trump targets offshore wind again

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