Stephen Kinnock says Reeves looking ‘very carefully’ at wealth tax
Health minister Stephen Kinnock has given the strongest hint yet that a wealth tax might be on the agenda for the government after his father – the former Labour leader Lord Kinnock – intervened to push for the policy over the weekend.
The junior Kinnock told LBC’s Shelagh Fogarty that the government has “already taken steps to ensure that those with the broader shoulders bear the greatest burden”.
“For example, what we’ve done on non-doms, on capital gains tax, the profits of big energy companies, taxing private jets.”
Insisting that it “it’s a matter for the Chancellor”, Kinnock said that he welcomes views on the issue from all around the Labour Party.
On Monday, a Downing Street spokesperson refused to rule out the tax when pressed on the issue, also pointing to those with the “broadest shoulders” and saying: “We are committed that the wealthiest in our society pay their fair share in tax.”
No10 said that while they would not rule the policy out, they would not be going into detail on Budget measures at this stage.
Neil Kinnock told Sky News’ Trevor Phillips on Sunday that the government should introduce a two per cent levy on assets over £10m – with a view to raising £11bn each year.
Lord Kinnock said: “It’s not going to pay the bills, but that kind of levy does two things.
“One is to secure resources, which is very important in revenues. But the second thing it does is to say to the country, ‘we are the government of equity’.”
Is a wealth tax the new wedge?
The younger Kinnock said: “So we’re absolutely guided by two things, fairness, but also ensuring that we grow the economy.
“It’s also about the efficiency and effectiveness of the tax collection system. And are we sure that if we do put measures in place around things like a wealth tax, that it would actually collect the tax that it is supposed to collect.”
Meanwhile, Nigel Farage – talked up by Labour as the de facto opposition leader – sarcastically called plans to impose more taxes on the wealthy as “genius”.
“We already have an exodus of tens of thousands of our highest taxpayers. ‘Let’s get rid of all the rest of them and tax the poor.’
“There is an exodus, and not just of high taxpayers, but an exodus of wealth from this country.
“Britain is suddenly becoming an unattractive place for many to live.”