Labour 'draws up plans for wealth taxes' in bid to 'unlock' funds for public services

21 June 2024, 20:40

Labour is said to be drafting options for wealth taxes
Labour is said to be drafting options for wealth taxes. Picture: Alamy

By Emma Soteriou

Labour is said to be drawing up plans for wealth taxes as a way to 'unlock' funds for public services if it wins the general election.

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The proposals are understood to include increases in capital gains tax, which could raise £8 billion.

Another option on the table is significant changes to inheritance tax, according to the Guardian.

The move would make it more difficult to “gift” money and assets tax free.

If both changes are introduced, it could raise up to £10 billion in revenue, one document suggested.

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A senior Labour source told the paper: “We are starting from ground zero with our public services and infrastructure.

"We have to show we are serious about borrowing and raising revenue from taxes if investors are going to walk in step with us.

"These measures are part of unlocking wealth and putting it to work."

A second source said: “We have to show we are credible when it comes to transforming the country. Fiscal credibility means reforming tax as well as prudent borrowing.”

Labour is understood to have plans to present the Office for Budget Responsibility (OBR) with several options to be analysed.

The party has faced mounting pressure to explain how it intends to fund its plans for government if it wins the election.

A Labour spokesperson said: “Keir and Rachel have made clear that our priority is growing the economy, not increasing taxes.

"We have set out fully costed, fully funded plans, with very specific tax loopholes we would close. Nothing in our plans requires any additional tax to be increased.”

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