Andy Burnham has been called upon to implement a two per cent wealth tax on every £1 million of individual wealth, according to a recent report by the Labour Party pressure group Compass. The document, obtained by The Independent, outlines 100 policy recommendations for the new prime minister’s initial 100 days in office.
The report suggests various types of wealth taxes, including a 2 per cent levy on each £1 million of wealth held by individuals. It states: “Our country’s economy is in ruins with underfunded public services and indebted councils. A wealth tax of 2 per cent on every £1 million of an individual’s wealth would transform the country.”
Data from estate agent Savills estimates there are approximately 673,143 homes across the UK valued at £1 million or more, with London alone accounting for around 340,620 of these properties.
READ MORE: Pressure Mounts on Andy Burnham to Implement a Wealth Tax on the Very Wealthy
Andy Burnham has hinted at the possibility of incorporating a wealth tax into his broader ten-year plan for the UK’s economic future. However, his advisers have primarily focused on proposals such as raising the capital gains tax threshold to align with income tax rates, aiming to generate additional revenue.
Speaking previously with footballer-turned-podcaster Gary Lineker, Mr Burnham commented: “I do believe we need a greater sense of fairness and people feeling things are being done in the right way, but at the same time I don’t want to be perceived as someone who is coming in with grudges and agendas and demonise one group.”
Further support for a wealth tax comes from academics Gabriel Zucman, professor of economics at the Paris School of Economics and University of California, Berkeley, and Ben Tippet, lecturer in economics and wealth inequality at King’s College London. Their recent report advocates for a focused tax targeting extreme wealth.
They explain: “The objective is not to create a broad-based wealth tax affecting millions of households but rather a focused tax on extreme wealth that can make billionaires pay the same tax rates as the rest, raise meaningful revenues and dampen runaway inequality.”
Known as “the architect of the global wealth-tax movement,” Zucman stated: “Given the small numbers of households that would be taxed, the UK government could implement this quickly.”
Tippet added: “The report shows that a well-designed minimum tax on the very wealthiest households is a realistic, targeted reform that would make the UK’s tax system fairer while raising substantial revenues.”