Wes Streeting, the former health secretary, has proposed a new wealth tax as part of his campaign for the Labour leadership. The plan aims to win support from the party's left wing by addressing perceived inequities in the current tax system.
Key Proposals
Streeting's proposal involves aligning capital gains tax rates with income tax rates. Under this plan, higher-rate taxpayers would pay 40% and additional-rate taxpayers 45% on their gains. He argues that the current system is unjust, favouring wealth accumulation over earned income. Streeting highlighted the disparity where a cleaner pays a higher tax rate than a landlord on asset growth.
Protecting Entrepreneurs
The proposal includes provisions to safeguard genuine entrepreneurs by offering reduced capital gains tax rates. It also aims to eliminate loopholes used to misrepresent income as capital gains. Streeting estimates the changes could generate up to £12 billion annually.
Streeting emphasised his working-class background and commitment to improving life chances for children. He contrasted his own upbringing with the housing challenges faced by families in temporary accommodation today. The former health secretary stated he told Sir Keir Starmer he would 'challenge him' in his first interview following resignation.
