Former UK health secretary Wes Streeting says the current tax system is unfair and penalises work, and he proposes a “wealth tax that works” as part of his pitch ahead of a potential Labour leadership bid. Multiple reports say his plan would raise up to £12 billion per year. Streeting, who recently resigned from Keir Starmer’s cabinet, argues for reform that equalises taxation on income and capital gains. Coverage including details from BBC discussions says the approach would involve changes to capital gains tax so that gains from selling assets are taxed using income-tax style bands, rather than the existing 24% rate that applies to higher earners in the current financial year. He also suggests closing loopholes that allow some people to present earnings from work as capital gains to reduce tax. The proposals include a tax-free allowance described as £3,000, with tax applying above that threshold at rates aligned to income bands of 20%, 40% and 45%. One report notes Treasury chief secretary Lucy Rigby rejects the idea, arguing that wealth is already taxed and that recent budgets aim to keep taxation progressive and fair.
Wes Streeting calls for a “wealth tax that works” raising up to £12bn a year
Former UK health secretary Wes Streeting says the current tax system is unfair and penalises work, and he proposes a “wealth tax that works” as part of his pitch ahead of a potential Labour leadership...
- Wes Streeting calls for a “wealth tax that works” and says the current system is unfair and penalises work.
- He says the plan could raise up to £12 billion a year.
- Streeting proposes changing capital gains taxation to align rates with income tax bands (20%, 40%, 45%) above a £3,000 allowance.
- He says the tax should reduce incentives to reclassify income from work as capital gains by closing loopholes.
- Lucy Rigby, the Treasury’s chief secretary, rejects the proposal, saying wealth is already taxed and current measures aim to keep tax progressive and fair.
Labour leadership hopeful Wes Streeting has called for a ‘wealth tax that works’ by equalising tax on income and assets. […] The post Wes Streeting calls for ‘wealth tax that works’ appeared first on Left Foot Forward: Leading the UK's progressive debate.
3 months agoWes Streeting, Secretary of State for Health and Social Care of the United Kingdom, arrives for a cabinet meeting at 10 Downing Street in London, Tuesday, Feb. 24, 2026.A minister has slapped down Wes Streeting’s suggestion of a “wealth tax that works”.Streeting resigned as the health secretary within Keir Starmer’s cabinet last week, accusing the prime minister of offering a “vacuum” instead of a vision for governing.Starmer has so far resisted dozens of calls from his own MPs to resign and a leadership contest is yet to be triggered.But Streeting has claimed he would seek to enter any potential competition.The backbencher now appears to have laid out parts of his policy agenda, telling the BBC’s Political Thinking podcast that he would introduce a wealth tax which could raise £12 billion a year.He said his plan for a “wealth tax that works” includes reforms to capital gains tax, a levy on the profit made after selling an asset.He wants to encourage investment by offering lower rates to “genuine” entrepreneurs.Streeting claimed this would address the unfair system which is “penalising work”.The annual tax-free allowance for the levy is £3,000 right now. Anything above this is taxed at rates depending on each individual’s income band.Higher or additional rate taxpayers must pay 24% on gains in the current financial year, but Streeting wants those rates to mirror income tax bands (20%, 40% and 45%).The ex-health secretary – usually seen to be on the right of the Labour Party – suggested closing loopholes which allow people to conceal income from work as capital gains.This is a clear appeal to those on the left of the party.But, it is very different to the Green Party’s proposal of an annual tax of 1% on assets above £10 million and 2% on assets above £1 billion.Even so, chief secretary to the Treasury Lucy Rigby rejected Streeting’s idea outright.She told BBC Radio 4′s Today programme: “We already tax wealth in this country.“The chancellor introduced a host of measures in her first budget, and then further measures in the last budget as well, that try and make sure that tax is as progressive and fair as possible.”Subscribe to Commons People, the podcast that makes politics easy. Every week, Kevin Schofield and Kate Nicholson unpack the week’s biggest stories to keep you informed. Join us for straightforward analysis of what’s going on at Westminster.Related...Kemi Badenoch Says It Was 'Very Flattering' To Be Praised By Nicki Minaj For Monstering Wes StreetingExclusive: Wes Streeting Allies Insist He Will Run In Labour Leadership Contest'He Has The Numbers': Wes Streeting Allies Insist He Will Run In Labour Leadership Contest
3 months agoWes Streeting - once seen as the Blairite candidate - called for a levy on the 'rich' that he claimed could bring in £12billion a year.
3 months agoWes Streeting - once seen as the Blairite candidate - called for a levy on the 'rich' that he claimed could bring in £12billion a year.
3 months agoThe former health secretary said his plan could raise up to £12 billion a year.
3 months ago
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