Labour backs ‘wealth tax’ on the ‘very best off people’ to pay for coronavirus crisis

Labour backs ‘wealth tax’ on the ‘very best off people’ to pay for coronavirus crisis if UK economy does not recover as shadow chancellor Anneliese Dodds says those with ‘broadest shoulders’ should be targeted

  • Anneliese Dodds said if tax rises needed they should only be for ‘best off’ people
  • Shadow chancellor said those with ‘broadest shoulders’ should contribute more
  • But she said she hoped economic growth would be enough to pay for crisis
  • Tories immediately accused Labour of plotting ‘tax raid on ordinary families’ 

Labour has urged the Government to impose a ‘wealth tax’ on the ‘very best off people’ to pay for the coronavirus crisis if the UK economy fails to recover. 

Shadow chancellor Anneliese Dodds said the ‘best way’ to pay for the cost of the outbreak would be through economic growth. 

But she said if that fails to materialise then ‘those with the broadest shoulders should be bearing more of a contribution’. 

The comments, coming ahead of Chancellor Rishi Sunak’s mini-Budget this week,  prompted the Tories to accuse Labour of advocating a ‘tax raid on ordinary families’, targeting homes and savings. 

Shadow chancellor Anneliese Dodds, pictured on the BBC’s Andrew Marr Show this morning, said if tax rises are required they should be targeted at the ‘very best off people’

Chancellor Rishi Sunak, pictured in 10 Downing Street on May 29, will set out his plans for the UK economy at a mini-Budget this week

Chancellor Rishi Sunak, pictured in 10 Downing Street on May 29, will set out his plans for the UK economy at a mini-Budget this week

The UK is likely to be dealing with the economic fallout of the deadly outbreak for years to come after the Government spent billions of pounds to keep firms and workers afloat. 

Ministers are hoping for a ‘V-shaped’ economic recovery where the nation bounces back quickly from the damage done since February. 

But Ms Dodds suggested if growth stagnates and the Government has to look elsewhere to pay for the crisis then ministers should focus on asking the most wealthy in society to pay more tax. 

She told the BBC’s Andrew Marr Show: ‘The best way to deal with the cost of this crisis is to ensure that our economy grows.

‘If we do that that will erode the value of the debt for as long as interest rates stay low.

‘I think it is really important we recognise that because that will provide the context for any decisions around taxation.

‘It is my view that if we do need to see an increased tax take we shouldn’t see it coming from those low and middle income people.

‘Instead we should have a focus on the very best off people. We have seen a rise in income and wealth inequality over recent years and I think those with the broadest shoulders should be bearing more of a contribution if that contribution is needed.

‘That would only be needed if we are not growing our way out of this crisis.’

Ms Dodds would not be drawn on exactly how such a ‘wealth tax’ could work but she said ministers should be exploring different mechanisms for generating cash. 

‘I would really encourage government to engage with that rather than looking at tax rises which would affect everyone equally,’ she said. 

‘I don’t think that would be fair. Actually most opinion polling data suggests the British public don’t think that is fair either.

‘They do think those who are able to afford it should be contributing more.’

Amanda Milling, the co-chairman of the Conservative Party, said Labour needed to ‘come clean’ about the proposals for ‘painful new taxes on homes and savings’. 

‘This tax raid on ordinary families is the same disastrous economic policy proposed by Jeremy Corbyn at the last election,’ she said. 

‘Labour’s tax hikes would hit millions of families hard, damage growth and undermine our recovery from Coronavirus.’  

Mr Sunak’s mini-Budget this week is expected to see the Chancellor set out a raft of measures designed to kickstart the British economy as it recovers from coronavirus disruption. 

However, ministers have refused to be drawn on exactly what could be announced.  

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