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Thursday, Jul 02, 2026

Call for Wealth Tax Hikes to Curb Reform UK's Rise

Former Labour Minister Liam Byrne urges increasing wealth taxes to counter Reform UK's rise, advocating for higher capital gains tax and closing loopholes. This approach aims to address inequality linked to the party's growing support, maintaining fairness in the tax system and using gains to reduce wealth disparity.
Liam Byrne, a former Labour cabinet minister, has urged Chancellor Rachel Reeves and Labour leader Keir Starmer to increase wealth taxes to counter the growing influence of the populist Reform UK party.

Byrne suggests higher capital gains tax, closing inheritance loopholes, and national insurance on investment income to address inequality.

His call comes as Reform UK secured over four million votes in the last election, gaining five seats.

Byrne's analysis indicates a strong link between wealth inequality and the rise of Reform UK.

The wealthiest 1% have seen substantial gains since 2010, far outpacing average societal wealth increases.

Byrne advocates for aligning capital gains tax with income tax, potentially raising £8bn to £16bn.

This move aims to use tax revenue to reduce inequality, though it risks driving wealthy stakeholders abroad.

While Reeves plans to focus her budget on investment, she has not committed to a wealth tax, seeking revenue through adjustments in fiscal rules and potential capital gains tax increases.
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