Press Release: Statement on CLASS’ Excessive Pay Levy Used in Labour Party Manifesto
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."