The Chancellor dismisses wealth tax as ‘mistake’

With the Autumn Budget merely weeks away, Rachel Reeves said it would be a “mistake” to impose wealth taxes she described as “unproven”, even as she hinted that further tax rises could still be on the way.

She argues that existing measures like inheritance tax reforms and abolition of the non-dom regime already target wealth. Ms Reeves further questions the revenue potential of a wealth tax, referencing Switzerland’s model (they have a wealth tax but no inheritance tax).

There is a clamour from within the Labour Party, including former leader, Neil Kinnock, to impose some form of wealth tax. They believe that a 2% tax on assets over £10 million could raise £11 billion in revenue.

However, the Chancellor outlined two autumn priorities: boosting economic growth for working families and securing revenue for public services. Despite this stance, Reeves is preparing to raise at least £20 billion in new taxes in the upcoming Budget to fill the fiscal shortfall inherited by the Government