TUC calls on government to protect workers and the UK economy from excesses of private equity takeovers

The TUC is calling on the government to introduce a set of measures to deal with ‘threats’ to the economy and workforce from the growth of private equity funded takeovers.

In its submission to the Treasury Select Committee, the TUC said that the government should:

• introduce new disclosure requirements for private equity owners
• introduce new requirements to inform and consult the workforce in companies subject to private takeovers
• introduce new protection for the terms and conditions of employees in takeover targets 
• investigate whether tax relief should end on loans used for company takeovers
• ensure that private equity partners pay proper income tax on their earnings. 

Private equity takeovers have risen from 9% of all deals to 25% in nine years, the TUC claimed.

Brendan Barber, TUC general secretary, said: “It’s time for action on private equity. The rise of super-rich private equity players is beginning to fundamentally change the nature of British and European capitalism.

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“We need a Europe-wide campaign led by unions to secure proper rules at both European and national levels.

“Taking action on private equity would be pro all the businesses that think long term, have to fully report what they do and whose owners pay proper tax on their investments.”