Former Labour leader Lord Kinnock calls for wealth tax

Former Labour person Neil Kinnock has called for a "wealth tax" to assistance the government's dwindling finances.

Lord Kinnock, who was person from 1983 to 1992, said imposing a 2% taxation connected assets valued supra £10m would bring successful up to £11bn a year.

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"It's not going to wage the bills, but that benignant of levy does 2 things," helium told Sunday Morning With Trevor Phillips.

"One is to unafraid resources, which is precise important successful revenues.

"But the 2nd happening it does is to accidental to the country, 'we are the authorities of equity'.

"This is simply a state which is precise substantially fed up with the information that immoderate happens successful the world, immoderate happens successful the UK, the aforesaid interests travel retired connected apical unscathed each the clip portion everybody other is paying much for getting services.

"Now, I deliberation that a motion oregon a important motion successful the absorption of equity fairness would marque a large difference."

The lad of a ember miner, who became a subordinate of the House of Lords successful 2005, the Labour adjacent said plus values person "gone done the roof" successful the past 20 years portion economies and incomes person stagnated successful existent terms.

In notation to Chancellor Rachel Reeves refusing to determination her fiscal rules, helium said the authorities is giving the quality it is "bogged down by their ain imposed limitations", which helium said is "not really the close picture".

A wealthiness taxation would assistance the authorities get retired of that concern and would beryllium backed by the "great bulk of the wide public", helium added.

His comments came aft a bruising week for Prime Minister Sir Keir Starmer, who had to heavily h2o down a payment bill meant to prevention £5.5bn aft dozens of Labour MPs threatened to ballot against it.

With those savings mislaid - and a erstwhile U-turn connected cutting wintertime substance payments besides reducing savings - the chancellor's £9.9bn fiscal headroom has rapidly dwindled.

In a hint of what could come, authorities curate Stephen Morgan told Wilfred Frost connected Sky News Breakfast: "I clasp beloved the Labour values of making definite those that person the broadest shoulders pay, wage much tax.

"I deliberation that's perfectly right."

He added that the authorities has already enactment a taxation connected backstage jets and connected the profits of vigor companies.