Minister reopens door to wealth tax days after cabinet colleague calls it ‘daft’
Rachel Reeves encouraged to consider wealth tax policy
- A government minister has indicated openness to a wealth tax, despite the business secretary recently dismissing the idea as "daft".
- Policing minister Dame Diana Johnson stated it is "important" to discuss and examine evidence for a wealth tax, while Business Secretary Jonathan Reynolds previously called it a "magic" concept that does not exist.
- The debate arises amid increasing pressure on the government to find ways to raise funds and address a deficit in public finances, following significant spending commitments and departmental cuts.
- Former Labour minister Anneliese Dodds and rebel Labour MP Rachael Maskell have also urged the government to consider a wealth tax, with Ms Maskell suggesting it could raise up to £24bn annually.
- The Chancellor, Rachel Reeves, is ultimately responsible for making decisions on tax measures to be announced in the budget later this year.