There are a number of ways Labour has been making the wealthiest in society pay more tax, without imposing one big wealth tax on them.
When it comes to ways the government can raise more money for spending, many reckon taxing the rich is the best way forward. However, critics argue that a so-called wealth tax would be incredibly complicated to implement, and would encourage the wealthy to move their assets abroad.
Whilst Labour are facing calls to increase taxes on the rich – including from some within the party, who argue this is a better way to raise funds than cutting benefits – it turns out they may stealthily be doing this.
In a thread on X, Labour councillor and ex-political journalist Sebastian Salek outlined the five ways the government are managing to “make the wealthiest pay their fair share.”
These were as follows:
- Increasing air passenger duty on private jets by 50 per cent
- Getting buyers of holiday properties or buy-to-lets to pay an extra 5 per cent on stamp duty
- Removing the inheritance tax exemption on farms worth £1m or more from April 2026
- Scrapping non dom status
- Introducing 20 per cent VAT on private school fees in January
Salek said the “three big advantages of this approach” are that they have less resistance than a one-off tax, have a number of secondary benefits – such as decreasing the use of private jets – and the revenue from these taxes will be recurring for several years.
This week, Keir Starmer’s government announced it was planning to cut the bill for for working age health and disability benefits, and is expected to announce billions in savings from cuts to personal independence payment.
Since coming to power last year, both Starmer and Chancellor Rachel Reeves have made much of the “black hole” left in the public finances by the Tories.
Related: Labour accused of ‘mimicking Elon Musk’ as civil servants told to deliver or leave