'We're in a mess': Nigel Farage hits back at Lord Kinnock's call for wealth tax
Nigel Farage has hit back at Lord Kinnock's idea for a wealth tax to raise extra cash - saying there was "already an exodus of high taxpayers".
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The Reform party boss spoke out to slam the thoughts of the former Labour leader, who has floated the idea of more taxes on the riches.
Lord Kinnock, who was Labour leader from 1983 to 1992, told Sky News last weekend that imposing a 2% tax on assets valued above £10 million would bring in up to £11 billion a year.
And this lunchtime, No10 refused repeatedly to rule it out.
The Prime Minister's spokesperson insisted they could not write a future budget, but pointed to the Chancellor's previous words where she said we are "not interested" in such taxes.
It's understood the Treasury are sceptical about the idea of wealth taxes - but Rachel Reeves has to fill a fiscal black hole of up to £30billion ahead of the next budget.
Mr Farage told LBC earlier today on the idea of more taxes on the rich: "Genius... We already have an exodus of tens of thousands of our highest taxpayers. 'Let's get rid of all the rest of them and tax the poor.'
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"There is an exodus, and not just of high taxpayers, but an exodus of wealth from this country. Britain is suddenly becoming an unattractive place for many to live.
"And the number of people in their 30s that I've met in the last couple of weeks who aren't yet wealthy but are entrepreneurs who want to make money - and they're heading off to Australia, they're heading off to Milano, they're heading off to America.
"We are in a real, real mess. Kinnock could not be more wrong."
The Chancellor has to find £1.25billion for the winter fuel u-turn, and another £2billion to pay for the welfare climbdown last week - after the PM faced defeat in the Commons over cuts to Personal Independence Payments.
She's vowed repeatedly to stick to her fiscal rules of not borrowing for day-to-day spending in a bid to shore up stability in the markets, and politically.
But that has made the idea of tax rises more likely.
Lord Kinnock told Sky on Sunday on the idea of more taxes on the rich: "It's not going to pay the bills, but that kind of levy does two things.
"One is to secure resources, which is very important in revenues.
"But the second thing it does is to say to the country, 'we are the government of equity'.
"This is a country which is very substantially fed up with the fact that whatever happens in the world, whatever happens in the UK, the same interests come out on top unscathed all the time while everybody else is paying more for getting services.
"Now, I think that a gesture or a substantial gesture in the direction of equity fairness would make a big difference."
No10 said earlier today: "We have repeatedly said that those with broadest shoulders carry the greatest burden, and the choices we've made reflect that, including closing loopholes on the non-dom tax regime, increasing air passenger duty on private jets and preventing tax rises for working people at the autumn budget.
"Our progressive tax system means the top 1% of taxpayers contribute nearly a third of income tax with revenue from wealth and asset taxes such as capital gains tax, inheritance tax, going towards funding 10s of billions of pounds for public services.
"You saw the decisions taken at the autumn budget, demonstrating our commitment to our fiscal rules while maintaining high levels of investment to rebuild our public services. As you know, I'm not going to write the next budget for you."