Increase wealth taxes to stop rise of Reform UK, says ex-Labour minister
Liam Byrne has warned the chancellor that extra levies on the rich are needed to halt the rise of the populist right.
A failure by Rachel Reeves to back a “windfall of wealth taxes” in her budget risks fuelling the rise of the populist right, a former Labour cabinet minister has warned.
Liam Byrne, a senior figure in the New Labour government and chair of the Commons business and trade committee, said that the rise of Reform UK at the last election meant the chancellor and Keir Starmer must urgently consider raising funds to deal with inequality.
Increase wealth taxes to stop rise of Reform UK, says ex-Labour minister.
Reeves desperately hunting for revenue
With Reeves desperately hunting for revenue-raising measures to pay for a public investment drive, Byrne said she should consider raising capital gains tax (CGT) to the same level as income tax, closing the inheritance loopholes exploited by the wealthy, cutting tax breaks for rich pension savers and charging national insurance contributions on investment income.
The Reform vote is lower in areas where house prices are higher
The Reform vote is lower in areas where house prices are higher, while property prices are about a third lower than the national average in constituencies with the top 20 highest Reform votes. About 8% more of the people in those constituencies are living in deprivation compared with the national average.
“Just to add insult to injury, those lucky enough to draw their income from capital enjoy a rate of tax that is much lower than everyone else’s,” said Byrne. “Almost 60% of UK investment income goes to the richest 10% of households.
Whilst the Chancellor has cut winter fuel payments to the most vulnerable this Christmas.
The Chancellor responded and said that she is aiming for a budget dedicated to investment, which is expected to be paid for with a finessing of fiscal rules to borrow more. Which is a roundabout way of saying, she is pandering to the Tory voters rather than the traditional Labour voters.