BUSINESS SECRETARY Jonathan Reynolds has ruled out introducing a wealth tax, describing it as a “daft” idea that would not work.
His comments came as the International Monetary Fund (IMF) warned that Britain will need to raise other taxes or cut spending to meet fiscal targets, The Times reported.
Lord Kinnock has called for a 2 per cent annual levy on assets over £10 million, a proposal backed by several Labour MPs. However, Reynolds dismissed the suggestion, telling Labour backbenchers to “get serious”.
He told GB News: “The idea you can just levy everyone … What if your wealth was not in your bank account, what if it was in fine wine or art? How would we tax that? This is why this doesn’t exist.”
Reynolds said an effective wealth tax “doesn’t exist anywhere in the world” and criticised it as a populist measure. He added that the Labour government has already increased taxes on wealth, citing private jets, private schools, inheritance tax and capital gains tax.
Labour MP Richard Burgon argued that refusing to tax wealth while cutting benefits has harmed the government’s support.
Meanwhile, the IMF said chancellor Rachel Reeves would need to consider tax rises on middle earners, scrapping the pensions triple lock and introducing NHS charges to balance the budget.
The IMF praised Reeves for “growth-friendly” policies but warned that high debt and an ageing population mean tax rises or spending cuts are unavoidable.
Reeves said the report confirmed that her policies are supporting Britain’s economic recovery.
