Business Secretary Reynolds Rules Out Wealth Tax Amid Fiscal Pressure

Business Secretary Jonathan Reynolds has firmly dismissed calls for a wealth tax as 'daft,' arguing that such a tax is impractical and does not exist effectively anywhere in the world. He highlighted challenges in taxing assets like fine wine or art, criticizing the idea as a populist gesture unlikely to generate significant revenue. Reynolds emphasized that the current Labour government has already raised taxes on wealth through measures on private jets, private schools, inheritance tax, and capital gains tax. The comments come amid speculation that Chancellor Rachel Reeves might consider a wealth tax to address a multibillion-pound funding gap caused by recent policy U-turns on welfare and winter fuel payments. While Reeves has not ruled out such a tax and some senior Labour figures, including former leader Lord Kinnock, have publicly supported it, Reynolds stressed the need for seriousness and cautioned against unrealistic proposals. The International Monetary Fund has also warned of limited fiscal headroom, urging tax reforms or spending cuts, but the government appears reluctant to pursue a wealth tax.