Thank you to all those who contacted me about the taxation of wealth.
There have been several calls for stronger taxes on wealth in recent times. In April 2021, the UN Secretary General called for governments to consider “a solidarity or wealth tax” on those who have profited during the pandemic, to reduce extreme inequalities. Since 2021, meanwhile, Patriotic Millionaires UK – a group of UK millionaires – has consistently called on the Government to tax them and the wealthy more in order to tackle inequality, support public services and address crises such as the pandemic, the climate emergency and the cost-of-living crisis.
As you will know, the Government has rejected calls for new taxes on wealth. However, I hope it will give proper consideration to these calls and the issues they raise.
On the wider issue of fairness in the tax system, I agree that we must make the system fairer, ensuring that the tax burden does not fall just on the wages of working people, but that those at the top pay their fair share too. This is particularly so when the country is facing a cost-of-living crisis that has seen energy bills soar, petrol and food prices up and weekly budgets stretched.
It is for this reason that I support a major review of tax breaks, too many of which simply provide loopholes for those who can afford the best advice. I believe, for example, that we should abolish non-dom status – using the money raised to fund the biggest expansion of the NHS workforce in history and breakfast clubs at every primary school in England – as well as cracking down on the use of hidden offshore trusts that allow individuals to avoid paying tax, ending the VAT exemption for private schools, and scrapping the private equity carried interest loophole.
I also do not believe it can be right that the Government is raising taxes on workers while making changes to the pension lifetime allowance that will give a large tax break to the top 1% of pension savers.
I can therefore assure you that I will continue to support calls for a fairer tax system where those with the broadest shoulders pay their fair share.