We face the real and imminent prospect of a Reform government. Millions of progressive voters have rejected the Labour Party. Our public services are unfit for purpose, wealth inequality is rising, and the cost of living is increasing. Our work is taxed more and more, while a smaller and smaller number of people accumulate greater and greater wealth. This is a pivotal moment, and the future of the country rests on an axis. The solution is clear:
Britain needs a Wealth Tax.
The Labour Party was established 126 years ago to represent the interests of working people.
Since then, we’ve answered the call at critical moments in the nation’s history, against the odds and against the forces of conservatism, stagnation, and elitism. In 1945, we answered that call. In 1997, we answered that call. Today, once again, we’re called to reshape our politics and economy.
But we’ve lost our way, too focused on managing decline and maintaining the status quo. We’ve become overly doctrinaire when it comes to doing nothing, and overly lax when it comes to signalling inaction.
The scale of the problem is huge. The top 10% own 57% of the country’s wealth. The top 1% own 23% of that wealth. The top 0.1% doubled their total share of wealth between 1984 and 2013, now owning 9%. The richest 50 families now own more wealth than half the country’s population.
At the same time, the cost of living crisis is worsening, food bank use is rising, our public services are on their knees, and the gap between the richest and poorest is widening. This disparity in wealth drives up poverty, exacerbates regional inequality, slows down good growth, limits social mobility, and undermines democracy.
We are Labour Party members and supporters who believe our movement is at its best when rising to the challenge and doing what is needed in service of the people. We believe that only through ending poverty, tackling inequality, and improving the economic conditions of communities up and down the country can we earn back the trust of Reform voters, and in the process show millions of progressive voters that we are once again a party they can believe in.
Wealth taxes could raise over £60 billion a year, sorely needed funds from currently untapped wealth. But more than this, they would counteract the hoarding of that wealth into the hands of a smaller and smaller number of people, breaking up the accumulation of assets in our country and reducing inequality.
We believe these measures are true to our party’s purpose and would materially improve quality of life in the UK, thus winning back millions of votes, and we therefore call for a Wealth Tax to be included in the party’s next general election manifesto.
So, what’s a Wealth Tax?
In short, a Wealth Tax is any tax on an individual’s assets over a certain amount, rather than a tax on income from work. There are many different types of Wealth Tax which could be implemented, some of which are outlined below.
A 2% Tax
A 2% tax on assets worth over £10 million, which would raise £24 billion a year and impact 0.04% of the population, just 20,000 people.
Amazon Tax
Making multinational corporations, like Amazon, declare their profits wherever they operate would raise almost £15 billion a year in unpaid Corporation Tax.
Capital Gains Tax Equalisation
Equalising Capital Gains Tax with Income Tax, thus taxing capital gains from assets at the same rates as income, raising roughly £12 billion a year.
NI on Investment Income
Applying National Insurance to unearned income from investments, raising between £10 and £18 billion a year.
Proportional Property Tax
An annual tax, replacing Council Tax, based on the value of a property, paid by the asset owner and saving renters thousands each year.
Land Value Tax
An annual tax on the value of the land owned, paid by the freeholder and not the tenant or leaseholder.
We are a very wealthy country, but the wealth is concentrated in the hands of a very few.
A Wealth Tax would both raise money and break up the accumulation of wealth in the country.
If you are a Labour Party member or supporter who believes it’s time to tackle wealth inequality in the UK, and that we should rise to this challenge as a movement, join us.
