Proposal for Wealth Tax Gains Support Ahead of Budget 2025
A proposal for a 2% wealth tax on assets exceeding £10 million aims to raise up to £25 billion annually to support health, housing, education, and infrastructure funding. This wealth tax has received broad public backing and the support of over 50 MPs, who signed Early Day Motion 1725 urging its consideration. Additionally, many Labour MPs are said to support it privately but have refrained from public endorsement due to party constraints.
The proposal is being presented as an option for Budget 2025, with discussions noting potential stealth taxes through threshold adjustments. It is also indicated that Reeves is unlikely to increase the basic rate of income tax. Tom Burgess, chief executive of Taxpayers Against Poverty, advocates modernizing the tax system by taxing wealth more and income less, to reduce poverty and inequality effectively.
The wealth tax is argued to be fair, popular, and capable of funding crucial public services while also boosting economic growth by redistributing wealth from a small number of high-net-worth individuals. However, the proposal criticizes the government for limiting open discussion on the merits of a wealth tax and for missing an opportunity to reform the tax system comprehensively.
