Starmer is under pressure from unions to launch wealth tax raid

Sir Keir told The Telegraph in June that he plans to cut taxes as prime minister. Photo: Stéphane Rousseau/PA

Sir Keir Starmer is under pressure from union bosses for a tax raid on the assets of wealthy Britons if Labor wins the next election.

The Trades Union Congress (TUC) said it has come 'time to start a nationwide conversation about taxing wealth' as ​​the Labor leader gears up for the upcoming general election campaign ahead of conference season.

About a quarter of Labor's donations come from unions, with the party receiving £5.1m in 2022, down from £6.7m a year earlier.

Under the TUC plan, rich people will pay « A one-time tax of 1.7% on assets over £3m.

This will rise to 2.1% on assets over £5m and 3.5% on assets over £10m sterling.

Only pension baskets will be excluded. Everything else, including family homes, cars, jewelry, art, cash in the bank and investments in stocks and shares, will be on the table.

TUC said it was inspired by Spain's so-called solidarity tax. , a temporary levy introduced by the government to replenish the state budget in the face of an energy crisis and soaring inflation.

Taxes on wealth in Europe

Paul Novak, general secretary of the TUC, accused wealthy British households of «making it up». c», «accumulating wealth and getting richer and richer while workers struggle to survive.»

He said: «Porsche sales are at an all-time high, bankers' bonuses are off the charts, and salaries The CEO is growing.»

Tom Ryan of the Taxpayers Alliance said the new wealth tax would hit an already weak economy.

He added: “Wealth taxes just don’t work. These fees do not generate significant revenue, and their introduction now will slow down the already sluggish growth.

«The best way to strengthen public finances is to reduce taxes and solve the problem of rising public spending.»

Norwegian The wealth tax, which is levied at rates up to 1.1 percent, is blamed for driving some of the country's biggest taxpayers out of the country, and Switzerland is a popular alternative for those who object to the tax.

The TUC urged Chancellor Jeremy Hunt to use his autumn statement to «make sure the wealthiest pay their fair share of taxes».

A Treasury spokesman said the wealthy already pay a high share of taxes levied in the UK.

2806 people of the population pay a tax of 40-45 percent

A spokesman said: «Taxes on wealth in the UK are the same as in other G7 countries and our progressive system means that the top 5% of income tax payers pay half of all income tax and millions of people don't pay it at all.»

The government is currently struggling with a large budget deficit and is expected to borrow around £130bn this year and £100bn in 2024, which means it cannot risk alienating the wealthy.< /p>

MP Jack Lopresti, vice chairman of the Conservative Party, said: «This is clearly an attempt to stir up hateful house tax plans.» to say that this would not be Labor politics coming in through the back door.

«The public should know that Labor is nothing more than extra taxes for hard-working Britons.»

The highest tax a burden since World War II

Workforce sources downplay the prospect of a wealth tax, insisting that the party will instead prioritize economic growth given the economy is still not back to its pre-pandemic size.

< p>The wealthy are likely to suffer from lower fees instead, including ending the tax system for non-residents and applying VAT to private school tuition fees.

In June, Sir Keir told The Telegraph that he planned to cut taxes as prime minister.

“Basically, I want less taxation. We are not looking at leverage of taxation, we are looking at leverage of growth,” he said.

However, he had previously suggested that “those with the broadest shoulders” and “people who make their money on property, dividends, stocks, stocks—they should be looked at” when it comes to raising taxes to pay for Social Security.

In 2019, Sir Keir worked in the shadow office of Jeremy Corbyn. The party's manifesto for that year's general election included pledges to «put wealth and power in the hands of the many» and «ensure that the cost of the transition to a green economy is reduced fairly and falls primarily on the wealthy.»

The Labor representative backed down comments.