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last mo.

Downing Street Signals Openness to Two-Percent Wealth Tax on Ultra-Rich

Union endorsements for the levy aim to tackle a £30 billion funding gap created by recent U-turns on welfare reforms.

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Rachel Reeves is looking for ways to plug gaps in the public finances (Photo: House of Commons/Reuters)
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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.