Reeves ought to put wealth tax on the price range desk | Funds 2025

It now appears possible that Rachel Reeves will keep away from the ignominy of turning into the primary chancellor in additional than half a century to boost the essential charge of earnings tax in her price range subsequent Wednesday (Rachel Reeves plans £7.5bn tax rise in price range after U-turn on earnings tax charges, 14 November). That doesn’t imply we taxpayers gained’t be hit elsewhere within the price range, although, together with the opportunity of stealth taxes by adjustments to thresholds.

However there may be an alternative choice – one that’s honest, fashionable with the general public and supported by a major variety of Labour MPs: a wealth tax. Introducing a 2% tax on property above £10m would increase as much as £25bn yearly to put money into well being, housing, schooling and infrastructure. Polling reveals that the thought is constantly fashionable with the general public, and the folks most definitely to pay the tax, millionaires, additionally help the thought.