Smash hit

It is estimated that the value of tax avoidance by Britain's top companies is worth some £25 billion a year. On average they have reduced their tax payments on profits by 5% over the last five years. It is now believed that the effective tax rate of the top 50 companies is as low as 22% and this has all been done legally. The boardrooms of these companies still complain that they are taxed too much but they don’t vote Labour either.

This money could build more hospitals and schools or add more than 10% to the basic state pension, or even take hundreds of thousands of low-paid workers out of taxation altogether.

These tax concessions have been granted by government over recent years because of pressure from these top companies and the rich individuals that run them. Instead public sector workers - who do vote Labour - are being told that their pay should be capped for the sake of the public purse.

Barack Obama has committed to closing these tax loopholes that don’t help America. He has even pledged to give tax breaks to companies that choose not to export American jobs overseas. Obama made a historic speech which was in perfect tune with the needs of the nation; a speech which I hope is the beginning of the end for the tired and stagnant policies of the Bush era.

In the UK it’s time for the Labour Government to consign Blairism to the history books and re-connect and tune into the needs of hard-working families.

The Labour Government has shown it can by introducing rights for agency and temporary workers. These protections not only give hundreds of thousands of temporary workers more rights but they protect core workers from having their pay and conditions undercut by temporary and agency workers. .

At this weeks TUC, we will continue to press the Government for a windfall tax on energy companies and a more progressive tax regime. Policies which we know will help Labour re-connect. Gordon Brown needs to listen to the concerns of working people and demonstrate that he understands them, that he wants to help them and that he is prepared to fight for them.

There is a long way to go and a change is needed urgently. Gordon Brown once said; “best when were boldest, best when we’re Labour". So go on Gordon, now more than ever its time to be bold, its time to be Labour.

If I’m asked can Labour change to win the next election? "My answer is yes we can."

Derek Simpson is Joint General Secretary of Unite the Union

Times Recommends

• Fern Britton: 'I still can't see that I was wrong'
• Extreme cooking
• Easy French: Tarte Tatin