London Daily

Focus on the big picture.
Friday, Jul 10, 2026

Labour may tax wealth more heavily to fund social care, says Starmer

Labour may tax wealth more heavily to fund social care, says Starmer

Party under pressure to set out alternative after condemning PM’s plan to increase NI contributions
Labour is considering taxing wealth more heavily to raise funds in order to tackle the social care crisis, Keir Starmer has confirmed, as his party comes under pressure to set out its own costed plan.

Labour has condemned the prime minister’s plan for a 1.25 percentage point increase in national insurance contributions (NICs) as unfair – but has so far declined to say how it would raise the funds.

Announcing his proposal on Tuesday, Boris Johnson taunted Labour MPs, saying, “plan beats no plan”.

Asked for his alternative to the NICs rise, Starmer said, “When it comes to funding it, I wouldn’t look to working people and have a tax hike on them. I would say that those with the broadest shoulders should pay.”

He added: “Those that earn their income from things other than work, should pay their fair share.” Pressed on whether that could include a wealth tax, he said: “People who earn their money from property, dividends, stocks, shares – capital gains tax, these should all be looked at as a broader, fairer way of raising taxes.”

Asked again whether he favoured wealth taxes, he replied: “I think we should look at all of these options.”

Leftwing MP Richard Burgon has recently called for a 10% tax on the assets of the super-rich who have over £100m in wealth.

Jeremy Corbyn’s radical 2019 manifesto included a pledge to tax capital gains and dividends at ordinary income tax rates, narrowing the gap between the tax treatment of earned and unearned income.

There was also a commitment to examine the idea of a land value tax, which could be levied on homeowners and businesses in proportion to the value of the property they own. The Conservatives responded to this idea by claiming Labour wanted to impose a tax on gardens.

Starmer has come under pressure to say more about how Labour would fix the crumbling social care system. Some senior Labour figures have been dismayed at the party’s lack of a fully worked-up proposal, despite widespread reports for several months that the Conservatives were about to produce their own.

The Manchester mayor, Andy Burnham, has said Labour should put forward its own proposal at its annual conference in Brighton later this month.

Burnham, who worked on social care reform as Labour’s health secretary a decade ago, said the annual conference, which kicks off in just over a fortnight, would be a good time to make the party’s position clearer.

“I don’t think the Labour party can come up instantly with its alternative to what the government announced … it needs to digest what the government has said, but I would like to see them do it soon – perhaps at conference,” he told Sky News.

“We have a government plan here, I think they’ve gone down the wrong path because they’ve loaded the whole cost of social care on the shoulders of younger people, lower-paid people, people who have student debt, people struggling to get on the housing ladder, I don’t think that’s fair.”

He added: “There’s an opportunity here for Labour to set out a much better alternative and I would say to them I think they should do that sooner rather than later, but the conference would be a good time to do that.”

Burnham has said more money for social care should be raised through a 10% levy on estates, instead of a national insurance increase. When the plan was originally mooted after cross-party talks before the 2010 general election, the Conservatives called it a “death tax”.

Labour’s annual conference will be Starmer’s first opportunity to address party members en masse, and aides say he spent part of his summer holiday in Devon working on his speech.

Johnson’s health and social care plan was comfortably passed by MPs on Wednesday. Starmer whipped his MPs to vote against the plan – prompting Conservative MPs to claim Labour had rejected extra funding for the NHS and social care.
Newsletter

Related Articles

0:00
0:00
Close
University College London Report Proposes Replacing Council Tax and Stamp Duty With National Property Tax
Treasury Places Amazon, Google, Microsoft and Oracle Under New UK Financial System Oversight Rules
Severe Heatwave Drives Dangerous Ground-Level Ozone Pollution Across Two Thirds of European Union
Westminster in Freefall as Farage's By-Election Gamble Triggers Broader Systemic Crises
Institutional Fractures and Political Volatility Reshape Britain's Domestic Landscape
Deadly Fire, Health Emergencies and Political Upheaval Shape a Volatile Global News Cycle
UK Energy Strategy Focuses on Storage and Offshore Wind to Support Renewable Transition
Regional Governments Gain Greater Role in Britain’s Infrastructure and Economic Strategy
Britain Strengthens Technology Sovereignty Through Tougher Artificial Intelligence Competition Rules
UK Government Expands Artificial Intelligence Use Across Public Services Despite Privacy Debate
UK Universities Warn of Financial Pressure After Sharp Fall in International Student Enrolment
Welsh Government Completes Rail Nationalisation With One Point Five Billion Pound Modernisation Plan
Northern Ireland Records Export Growth as Companies Benefit From Dual UK and EU Market Access
Greater Manchester Launches Two Billion Pound Plan to Convert Empty Commercial Sites Into Housing
National Grid Connects Europe’s Largest Battery Storage Facility in Yorkshire
UK Defence Ministry Plans Royal Navy Autonomous Fleet Deployment to Indo-Pacific
Scotland Approves Europe’s Largest Floating Offshore Wind Project Near Aberdeen
Competition and Markets Authority Blocks Forty Billion Pound Technology Deal Over AI Security Concerns
UK Launches Five Hundred Million Pound Artificial Intelligence Network for National Health Service Diagnostics
Bank of England Signals Possible Interest Rate Cuts After Inflation Falls Below Target
UK Government Unveils Major Wealth Tax Reform to Fund National Health Service Infrastructure Expansion
Flight Instructor Jumped to His Death — Student Landed the Plane: "You Know What You Need to Do"
The Physical and Electronic Barriers Disrupting Domestic Wireless Networks
France and Morocco Open World Cup Quarter-Finals as Collina Defends Refereeing
Prince Harry Suffers Major Court Defeat in Legal Battle Against Daily Mail Publisher
Bonnie Tyler, Welsh Singer Behind Total Eclipse of the Heart, Dies at 75
Barclays and PwC Report Examines Economic Opportunities from Financial Asset Tokenisation
Pound Sterling Strengthens as Investors Anticipate Further Bank of England Rate Increases
British Business Bank Invests Twenty-Seven Million Pounds in Kraken Technology Defence Expansion
UK Business Secretary Peter Kyle Backs State Investment Strategy Inspired by US Approach
UK Electricity System Issues Margin Notice as Heatwave Tightens Evening Supply Outlook
Labour Leadership Contest Opens as Andy Burnham Emerges as Expected Sole Candidate
Tech Pulse: The Future of AI and Screen Culture
Global News Briefing: Escalating Geopolitical Tensions and Corporate Shakeups
Global News Brief: Escalating Conflicts, Public Health Crises, and World Cup Drama
Rare Early Copy of US Declaration of Independence Found in British Archive
Cornish Language Revival Gains Momentum Through Schools and Community Programs
UK Authorities Face Criticism Over Prisoner Early Release Safeguards
Clacton By-Election Set After Nigel Farage Resigns Seat to Trigger Contest
Government Agencies Review Long-Term Fiscal Risks from Aging Population and Low Productivity
UK Heatwaves Expose Pressure on Public Transport and Housing Infrastructure
UK Government Prepares Welfare Review Amid Debate Over Personal Independence Payment Reform
UK Government Expands Rapid Endometriosis Testing Across NHS Services
Vistry Group Issues Profit Warning as UK Housing Market Faces Continued Pressure
Virgin Media Receives Record Twenty-Eight Million Pound Fine Over Contract Cancellation Failures
Office for Budget Responsibility Warns UK Public Finances Face Long-Term Pressure
UK Watchdog Warns Regional Income Gap Has Barely Narrowed in Three Decades
IMF Raises United Kingdom Growth Forecast as Inflation and Energy Pressures Ease
UK Government Launches Regulatory Reform Bill to Speed Up Commercialization of Innovation
Prince Harry Loses Privacy Lawsuit Against Daily Mail Publisher After High Court Rejects Claims
×