Overview
- Former Labour leader Neil Kinnock and major unions are advocating a two per cent levy on assets over £10 million to raise up to £11 billion annually.
- A Downing Street spokesperson declined to rule out the tax for the upcoming Autumn Budget, stressing that those with the “broadest shoulders” should pay more.
- Chancellor Rachel Reeves must fill an estimated £30 billion shortfall after reversing welfare cuts and winter fuel payment reforms.
- Conservative figures warn the proposal risks accelerating the departure of high-net-worth individuals, noting that 10,000 to 15,000 have left the UK this year.
- Treasury advisers and economic analysts caution that valuing diverse assets could prove complex and potentially drive long-term revenue losses through capital flight.