Press Release: Statement on CLASS’ Excessive Pay Levy Used in Labour Party Manifesto
FOR IMMEDIATE RELEASE
As Labour officially launch their manifesto, the spotlight turns to curbing fat cat pay. The excessive pay levy is a payroll tax on employers to de-incentivise excessive salaries and to provide an extra source of revenue for public services.This policy would only affect those earning over £330K. Employers will be charged a levy of 2.5% on this amount, with 5% on those earning over £500K.
Dr Faiza Shaheen, Director of the Centre of Labour and Social Studies, said: "Year after year we have seen pay increase for the privileged few while for many people pay rises are a distant memory. Despite publicly shaming companies the status quo remains - an excessive pay levy could force companies to think twice about inflated wages at the top and generate extra income for our beleaguered public services."
"There is a growing consensus that something must be done about this key driver of inequality. The excessive pay levy will finally take a decisive step to tackle the irrational, unearned, and bloated levels of pay at the top, and the gulf between the Mike Ashley's of this world and their workers."