Starmer hints at Labour plan to tax wealth

Leader says he is looking at ‘how we tax fairly’ and will be including all types of income in the equation

‘Too often when it comes to elections, people feel it is a choice of heart versus head. Values or competence’

LABOUR could tax wealth more heavily if it wins power, Sir Keir Starmer suggested yesterday as he wrapped up his party’s conference.

He told LBC Radio he was considering what would be a “fair way to tax all income wherever it comes from”.

The Labour leader rejected the suggestion that he wanted to impose a “wealth tax”, but he said he was “looking at how we tax fairly”.

Sir Keir said at the weekend that Labour would reinstate the 45p top rate of income tax on those earning more than £150,000 – scrapped by the Tories in last week’s controversial mini-budget – if it wins the new election.

Asked if he would roll out a wealth tax, he said: “On wealth, I am looking at whether and how we tax all different forms of income ... some people obviously earn their income through a wage, other people earn it through stocks and shares and dividends and we are looking at what is a fair way to tax all income wherever it comes from.”

When told that sounded like a “wealth tax”, Sir Keir said: “No, it is not really a wealth tax. It is looking at different forms of income, it is stocks and shares and dividends.”

The Labour leader admitted some of the tax cuts he promised – such as sticking to the Tory cut on basic rate income tax from 20p to 19p – were unfunded.

The BBC Radio 4 Today programme quoted Institute for Fiscal Studies statistics showing that of the Tories’ £45billion of tax cuts, Labour had pledged to reverse less than half.

Sir Keir did not query these figures, and accepted that any incoming Labour government would initially have to borrow to fund the 1p income tax rate cut. And he denied accusations he was “boring”, saying the birth of his children was his most “exciting moment”.

The comments came as Labour’s conference in Liverpool – seen as one of the most successful in years – drew to a close. The event was officially closed by deputy leader Angela Rayner, who said the economic chaos of the past few days showed voters no longer had to choose between “heart versus head”.

She said: “Too often when it comes to elections, people feel they have a choice of heart versus head. Values or competence. This week we have shown it’s a choice you will never have to make again. And this past week, the Tories have shown it too. The Conservative Party are no longer pretending to be competent and stable.”

Ms Rayner added: “Never again can we let them pretend they are the patriotic party. I love my country. That’s why I want so much better for it. But the Tories now think our biggest economic problem is you. The working people of Britain. While they think you are our country’s greatest weakness, we know that you are our greatest strength.”

Ms Rayner pledged that a Labour government would be “radical, responsible, realistic”.

“We have shown how together we will transform this country. And the depth of talent across our party. And we have come together to honour our history as only Labour can.

“Be in no doubt, the times ahead are going to be tough. Now, let’s rise to the moment and deliver for the working people of Britain,” she told delegates.