Rachel Reeves to reject wealth tax over exodus fears – reports

Chancellor expected to dismiss calls for 2% levy on assets over £10m

Sahar Nazir
clock • 2 min read

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 ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

UK IFA deal numbers hit 'new peak' in 2025

UK IFA deal numbers hit 'new peak' in 2025

Deals rose from 50 to 133 between 2020 and 2025

Sophia Panayi
clock 12 May 2026 • 4 min read
Phillip Wickenden: The political map has been redrawn

Phillip Wickenden: The political map has been redrawn

'The market is not pricing personalities. It is pricing discipline'

Phillip Wickenden
clock 11 May 2026 • 6 min read
Why the end of paper shareholdings matters now

Why the end of paper shareholdings matters now

‘There is still time before the 2027 deadline’

Ben Rogers
clock 11 May 2026 • 4 min read