We’re optimistic that we can win the case for tax reform with the new government
The UK has a new government – and we’re in a strong position to influence them.
Labour won on a promise of “change”. The new Prime Minister has committed to invest in public services and now he has a big majority to deliver on these promises.
Though we are optimistic, the challenge facing Keir Starmer’s government is massive.
Public services are on their knees. Climate and environmental breakdown is accelerating. Our country is divided and unequal.
The repair bill for the last 14 years of austerity is huge. To make the changes we all want to see in the NHS and public services, Labour will need to invest a lot more money than it promised in its manifesto.
What the public want
The public wants to see investment in the NHS and public services. All of the polling shows this.
At Tax Justice UK it’s our job to persuade the new government that we can afford high-quality public services and tackle inequality.
The UK is a wealthy country. Increasing taxes on the super-rich and wealthy companies would raise billions of pounds.
What Labour will do
Labour have said that they will implement some of the changes we have been calling for.
The new government will close loopholes in the new non-dom scheme – ensuring the super-rich can’t wriggle out of paying their fair share – and will apply VAT to private schools.
Labour has also said they’ll invest more money in HMRC, so they can better claw back billions of pounds of missing tax.
They will also raise the windfall tax on big oil and gas producers in the North Sea from 75% to 78%.
These are all fair and equitable ways to raise more revenue for our struggling public services – and we support them but it won’t be enough.
What Labour needs to do
There are other progressive tax reforms Labour may be convinced to implement if we keep the pressure up.
For example, Labour could make changes to ensure that income from wealth is taxed at the same rate as income from work. There is speculation that the new government may do this by increasing capital gains tax.
We would support this. Treating income from wealth and income from work in the same way could raise up to £16.7 billion a year.
Tax wealth more
Beyond capital gains tax reform, there are other tax policies Labour will need to consider including taxing the super-rich more.
Our research shows that the government could raise £60 billion a year by implementing ten tax reforms we’ve identified. This includes a 1-2% annual wealth tax on assets over £10 million.
At Tax Justice we are determined to convince the government that taxing wealth more and reforming the tax system is a just, sensible and popular thing to do. We will need your help.
We’re just setting out on this new phase of our mission. We’ve helped to put wealth taxation onto the agenda.
We believe we can make big changes over the next five years – and are hopeful the UK will be a better, fairer place by the end of it.