Chancellor Rachel Reeves is expected to reject pressure from Labour MPs to implement a wealth tax after cabinet ministers reportedly cautioned that this would not raise money as it would lead to wealthy individuals exiting the UK.
Reeves faces pressure from backbenchers and unions to levy a new tax on the savings, investments and property of the wealthy, according to The Times. Former Labour leader Lord Kinnock suggested there should be a 2% tax on assets worth over £10m. Cabinet ministers reportedly described the wealth tax as a "non-starter". "Wealth taxes don't work," one cabinet minister told The Times. "Just look at what's happened in other countries that have introduced them. They just don't raise money, certainly not the kind of money that we're looking for." Another cabinet minister said a wealth ...
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