Wealth Tax: Potential Merits

08 Apr

Question

During the Question session concentrated on assessing the viability of a wealth tax, parliamentary focus was centered on examining fiscal policies amidst economic disparities. Labour representatives, Neil Duncan-Jordan and Brian Leishman, queried the Government's strategy related to inequalities exacerbated by recent socio-economic challenges, urging for a wealth tax. In response, James Murray of the Government emphasized recent tax reforms detailed in the Autumn Budget 2024 and the necessity of supporting the welfare system without fiscal irresponsibility.

Outcome

The session leaned towards robust discussions but did not culminate in any definitive governmental policy shift towards implementing a wealth tax. The emphasis remained on existing and recently adjusted taxation measures designed to balance public finances.

Key Contributions

Neil Duncan-Jordan

Labour

Solicit assessment on merits of introducing a wealth tax, referencing public sentiment and potential impact on affected demographics.

Brian Leishman

Labour

Highlight public dissatisfaction over austerity and urge consideration of an annual wealth tax. Argue for a necessity to address inequality, accelerated post-pandemic, through wealth redistribution.

James Murray

Underscore Government's commitment to equitable taxation, referencing 2024 Budget reforms. Defend welfare reforms as necessary and principled against inactivity-inducing incentives. Clarify increase in public and capital investment to ensure sustainable public finance and economic growth.

Mr Gregory Campbell

DUP

Support Government's proposed measures with emphasis on fair taxation. Inquire about potential expatriation of wealthier individuals due to tax implications, mitigating income tax losses.

Original Transcript

Neil Duncan-Jordan

Poole

Lab

Question

UIN: 903671

14. What recent assessment she has made of the potential merits of introducing a wealth tax.

Brian Leishman

Alloa and Grangemouth

Lab

Question

UIN: 903678

19. If she will make an assessment of the potential implications for her policies of the findings of Oxfam’s poll on taxation, published on 25 March 2025.

Neil Duncan-Jordan

12:24

Analysis from a number of disability groups shows that the “Pathways to Work” Green Paper will have a detrimental effect on more than 3 million people, while polling from Oxfam shows that 77% of the public would rather the UK Government increased taxes on the very richest than cut the benefits of the poorest in society.

Should we not be looking at raising funds from those with the broadest shoulders?

James Murray

12:24

As I made clear earlier, the Government have already made changes to make the tax system fairer, and to ensure that the wealthiest pay their fair share. The reforms to the welfare system are principled reforms to tackle perverse incentives that encourage inactivity.

We need to support those in most need, get people back into work wherever possible, and protect the sustainability of the welfare system.

Brian Leishman

12:24

Let us be frank and not spin it: for 14 years, we saw austerity that ripped the heart out of communities; we then had a global pandemic, during which inequality was accelerated; and we are still feeling the effects of a cost of living crisis that is making ordinary people poorer.

The public do not want cuts or austerity—they want an annual wealth tax on the very wealthiest in society.

Is it not time we had a Government who do something different, give people what they want, and are willing to redistribute wealth for the benefit of many in society, and to improve living standards?

James Murray

12:24

I politely suggest that if my hon. Friend thinks we are imposing austerity, he has not read the Budget very carefully. It contains increases to revenue spending in all Departments—across the public spending envelope—and an increase in capital investment.

We are ensuring that we build for the future while protecting our fiscal rules. Let me be clear: those fiscal rules are not a nice-to-have addition to the way we approach the economy. Fiscal irresponsibility has a huge cost, as we saw under the previous Government.

Mr Gregory Campbell

East Londonderry

DUP

12:24

We support the Government in trying to determine a fair level of tax, especially for the very wealthy. However, will the Minister establish, if he can, the number of people who might leave the country as a result of a wealth tax, and therefore pay no income tax whatsoever?

James Murray

The hon. Gentleman makes an important point: we need to ensure that the wealthiest in society pay their fair share, while also attracting talent from around the world to the UK to work, invest and help to grow our economy.

It is on the back of that investment and economic growth that we will make people across the UK better off, and get more money into their pockets.

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All content derived from official parliamentary records