Chancellor Rachel Reeves is being urged to break with tradition and consider a radical new wealth tax in the upcoming budget, a move campaigners say could generate billions for vital public services.
The Popular Alternative to Stealth Taxes
With the Chancellor expected to avoid raising the basic rate of income tax, speculation is rife that taxpayers will instead face so-called stealth taxes through adjustments to thresholds. However, Tom Burgess, Chief Executive of the advocacy group Taxpayers Against Poverty, proposes a different path. He argues that a 2% annual tax on assets exceeding £10 million represents a fairer and more popular alternative.
This policy, he states, could raise an astonishing £25 billion every year. These substantial funds could be directly invested in the nation's foundational pillars: the health service, housing, education system, and national infrastructure.
Widespread Support and Political Pressure
The proposal is not operating in a vacuum. Polling consistently indicates strong public backing for a wealth tax. Notably, support is also found amongst those who would be most affected, with many millionaires reportedly in favour of the idea.
Within Parliament, more than 50 MPs have publicly endorsed Early Day Motion 1725, which calls on the government to evaluate proposals for a fair wealth tax ahead of the budget. Privately, the support runs deeper. According to Burgess, numerous Labour MPs have expressed their agreement but feel unable to add their names publicly due to party directives.
A Missed Opportunity for Modernisation?
Despite this groundswell of support from both the public and its own representatives, the government appears to be shutting down open discussion on the merits of a wealth tax. Campaigners like those at Taxpayers Against Poverty believe this is a significant misstep.
They argue that the government is missing a historic chance to modernise the UK's outdated tax system. The proposed reform would shift the burden, taxing excessive wealth more and income less. The accumulated wealth, they contend, is created by society as a whole and should be reinvested to tackle poverty, reduce inequality, and stimulate sustainable economic growth for everyone.
