Wealth taxes would raise up to £86bn a year and ‘rebuild Britain’, Labour MPs say

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A report by Labor MPs said the new taxes on wealth would increase to £86bn a year, allowing the government to avoid spending cuts and “rebuild Britain”.

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The analysis – on the eve of a spending review in which Rishi Sunak is expected to do penance on some public services – calls for a radically different approach to “transforming” the country.

It proposes four different tax models to grab up to £61bn per year from millionaires and billionaires whose wealth has grown since the Covid pandemic.

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An increase in taxes on dividends and capital gains in line with income tax would increase by approximately £25bn – taking the total to over £86bn per year.

John Trickett, the Jeremy Corbyn collaborator who ordered the research, said adopting it would “transform our public finances, making money available for our neglected public services”.

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“We can afford to plug the social care funding gap and offer pay increases to our key employees. We can reverse cuts to local government and education. We can rebuild Britain,” said the former shadow cabinet minister.

Other left-wing Labor MPs supported the study, including Mr Corbyn, who said: “It is time we tackle the gross accumulation of wealth and the growing inequality in terms of both class and region – wealth moving from the richest to the working people.” redistribute in.”

Former Shadow Chancellor John McDonnell said: “We live in a society of strange levels of inequality. This report not only highlights these extremes, but more importantly, shows how to deal with them.”

The call comes as Carey Starmer inches closer to supporting some sort of wealth tax in the next general election, saying: “I think we should look at all these options.”

The background is expected to cut further in local government, further education, prisons and courts by more than £2bn next year, according to the Institute for Fiscal Studies.

Meanwhile, Boris Johnson’s rescue plan for social care failed when it quickly emerged that the beleaguered service would receive little additional funding.

Mr Trickett’s report, reviewed by economists, puts forward four possible forms of wealth tax:

* A one-time tax of 5 percent on wealth over £500,000, as proposed by an Granthshala Wealth Commission – to raise £52bn per year.

* One-time tax on assets over £2 million raised from 8 per cent to 15 per cent – ​​about £40 billion a year.

* An annual tax on property above £2m, excluding principal residences, increased from 1 per cent to 2 per cent – ​​£22bn at a diluted rate.

* A hybrid tax, consisting of a one-time tax on assets above £2m and an annual tax on wealth received later – increasing to £61bn.

The MP for Hemsworth in West Yorkshire, said: “We can no longer manipulate around the edges or use rhetoric as action.

“The hardship caused by the pandemic has by no means touched the very rich. In fact, they have seen their wealth skyrocket.”

Mr Trickett said there are now more UK billionaires than ever before – and the richest 250 people enjoyed a £106bn increase in their wealth.

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Credit: www.independent.co.uk /

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