Monday 13 June 2016 11:44 am

Labour MP Dan Jarvis has lent his support to a one-off wealth tax in a bud to cut the deficit

A Labour MP tipped as a future party leader has lent his support to plans to introduce a one-off wealth tax designed to come ahead of a crackdown on tax avoidance.

The plan from the Fabian Society is designed to pay down the deficit, and avoid the need for further public spending cuts.

Long-term UK residents with a net wealth of over £10m would be captured by the charge, with those whose wealth exceeds more than £20m subject to a higher charge.

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In addition, “high risk” tax payers, such as non-doms and people who have historically used aggressive tax avoidance, would in future be expected to undergo more rigorous assessments.

Jarvis, who backed Andy Burnham in Labour's leadership contest, said: “The British public expect Labour to be a safe pair of hands with their money.

“Specifically, they expect the deficit to be reduced over the medium term – but for us to do so in a fair way. This is why the idea of a unique contribution is worthy of consideration – it opens up the possibility of a one-off response to a once in a lifetime financial crisis.”

Fabian Society general secretary Andrew Harrop added: “The ‘unique contribution’ is a pragmatic measure that can be used to reduce the deficit and build up resilience to future economic shocks.

“But it conveys radical intent by taking a share of the huge financial rewards the super-rich are able to generate, not from hard work but from returns on their passive wealth.”