UK Prime Minister Keir Starmer has declined to rule out the introduction of a wealth tax during recent parliamentary sessions, including Prime Minister's Questions. While Starmer and his spokesman have maintained Labour's manifesto commitments not to raise VAT, income tax, or National Insurance contributions, they have not committed to lifting the current freeze on income tax and National Insurance thresholds. This freeze, originally introduced under the Conservative government, has been criticized for causing fiscal drag by pushing millions of people into higher tax brackets. Additionally, Starmer has not ruled out potential increases in pensions taxation ahead of the Autumn Budget. However, a UK government minister later clarified that Starmer's administration will not introduce a wealth tax, countering calls from some Labour members. The business secretary also dismissed the idea of a wealth tax as "daft" and "unserious," labeling it populism and expressing frustration over its promotion within the party.
UK business secretary dismisses wealth tax as ‘daft’ https://t.co/J3BTUUA0dM
Jonny Reynolds says a wealth tax is daft and unserious Calls it populism and says it’s frustrating to see Labour colleagues call for it Dose of reality for the party from the business secretary Via @Joe_Mayes >>> https://t.co/jfSeYV3HIo
A UK government minister said Keir Starmer’s administration won’t introduce a wealth tax, pouring cold water on an idea that has been promoted by some in the Labour Party. https://t.co/BN9sdGOHqo