Andy Burnham, the Labour Prime Minister who took over from Sir Keir Starmer this summer, has been urged to implement a wealth tax as part of his forthcoming Autumn Budget. The Makerfield MP, who appointed Chancellor John Healey to Number 11 Downing Street, is set to deliver the fiscal statement on 28 October.
In preparation for the budget, the Compass thinktank has compiled a report titled Ending Business as Usual, which gathers 70 policy proposals from 15 left-wing thinkers. The report asserts that these suggested reforms could fulfil Burnham’s pledge to end four decades of neoliberal policies.
Michael Jacobs, professor of political economy at the University of Sheffield, and Neal Lawson, a close ally of Burnham, introduced the report by praising the Prime Minister’s “invaluable aura of authenticity.” However, they caution that although Burnham has ambitious plans, “there is no guarantee that he will be given any longer to deliver results than his immediate predecessor.”
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The authors contest the notion that a British government cannot govern from the left of centre, emphasising that it remains possible to pursue progressive policies. Among the proposals is a wealth tax on net assets exceeding £10 million, which is estimated to generate around £24 billion annually.
Emily Boswell, contributing writer to the report, states, “If the new Labour government is serious about rebuilding public confidence and delivering material improvements to people’s lives, it must be prepared to address one of the structural causes of inequality: a tax system that favours wealth over work.”
Jacobs urges Burnham and Chancellor Healey to resist conforming to “moderation and orthodoxy,” highlighting the availability of numerous policy alternatives. He adds, “As Burnham knows, the public is disillusioned with politics and angry with their politicians. He does not have long to prove to voters that, when he says he wants to end business as usual, he means it.”