London Daily

Focus on the big picture.
Friday, Jan 30, 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
AstraZeneca Announces £11bn China Investment After Scaling Back UK Expansion Plans
Starmer and Xi Forge Warming UK-China Ties in Beijing Amid Strategic Reset
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Markets Jolt as AI Spending, US Policy Shifts, and Global Security Moves Drive New Volatility
U.S. Signals Potential Decertification of Canadian Aircraft as Bilateral Tensions Escalate
Former South Korean First Lady Kim Keon Hee Sentenced to 20 Months for Bribery
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
China Executes 11 Members of the Ming Clan in Cross-Border Scam Case Linked to Myanmar’s Lawkai
Trump Administration Officials Held Talks With Group Advocating Alberta’s Independence
Starmer Signals UK Push for a More ‘Sophisticated’ Relationship With China in Talks With Xi
Shopping Chatbots Move From Advice to Checkout as Walmart Pushes Faster Than Amazon
Starmer Seeks Economic Gains From China Visit While Navigating US Diplomatic Sensitivities
Starmer Says China Visit Will Deliver Economic Benefits as He Prepares to Meet Xi Jinping
UK Prime Minister Starmer Arrives in China to Bolster Trade and Warn Firms of Strategic Opportunities
The AI Hiring Doom Loop — Algorithmic Recruiting Filters Out Top Talent and Rewards Average or Fake Candidates
Amazon to Cut 16,000 Corporate Jobs After Earlier 14,000 Reduction, Citing Streamlining and AI Investment
Federal Reserve Holds Interest Rate at 3.75% as Powell Faces DOJ Criminal Investigation During 2026 Decision
Putin’s Four-Year Ukraine Invasion Cost: Russia’s Mass Casualty Attrition and the Donbas Security-Guarantee Tradeoff
Wall Street Bets on Strong US Growth and Currency Moves as Dollar Slips After Trump Comments
UK Prime Minister Traveled to China Using Temporary Phones and Laptops to Limit Espionage Risks
Google’s $68 Million Voice Assistant Settlement Exposes Incentives That Reward Over-Collection
Kim Kardashian Admits Faking Paparazzi Visit to Britney Spears for Fame in Early 2000s
UPS to Cut 30,000 More Jobs by 2026 Amid Shift to High-Margin Deliveries
France Plans to Replace Teams and Zoom Across Government With Homegrown Visio by 2027
Trump Removes Minneapolis Deportation Operation Commander After Fatal Shooting of Protester
Iran’s Elite Wealth Abroad and Sanctions Leakage: How Offshore Luxury Sustains Regime Resilience
U.S. Central Command Announces Regional Air Exercise as Iran Unveils Drone Carrier Footage
Four Arrested in Andhra Pradesh Over Alleged HIV-Contaminated Injection Attack on Doctor
Hot Drinks, Hidden Particles: How Disposable Cups Quietly Increase Microplastic Exposure
UK Banks Pledge £11 Billion Lending Package to Help Firms Expand Overseas
Suella Braverman Defects to Reform UK, Accusing Conservatives of Betrayal on Core Policies
Melania Trump Documentary Sees Limited Box Office Traction in UK Cinemas
Meta and EssilorLuxottica Ray-Ban Smart Glasses and the Non-Consensual Public Recording Economy
WhatsApp Develops New Meta AI Features to Enhance User Control
Germany Considers Gold Reserves Amidst Rising Tensions with the U.S.
Michael Schumacher Shows Significant Improvement in Health Status
Greenland’s NATO Stress Test: Coercion, Credibility, and the New Arctic Bargaining Game
Diego Garcia and the Chagos Dispute: When Decolonization Collides With Alliance Power
Trump Claims “Total” U.S. Access to Greenland as NATO Weighs Arctic Basing Rights and Deterrence
Air France and KLM Suspend Multiple Middle East Routes as Regional Tensions Disrupt Aviation
U.S. winter storm triggers 13,000-plus flight cancellations and 160,000 power outages
Poland delays euro adoption as Domański cites $1tn economy and zloty advantage
White House: Trump warns Canada of 100% tariff if Carney finalizes China trade deal
PLA opens CMC probe of Zhang Youxia, Liu Zhenli over Xi authority and discipline violations
ICE and DHS immigration raids in Minneapolis: the use-of-force accountability crisis in mass deportation enforcement
UK’s Starmer and Trump Agree on Urgent Need to Bolster Arctic Security
Starmer Breaks Diplomatic Restraint With Firm Rebuke of Trump, Seizing Chance to Advocate for Europe
UK Finance Minister Reeves to Join Starmer on China Visit to Bolster Trade and Economic Ties
Prince Harry Says Sacrifices of NATO Forces in Afghanistan Deserve ‘Respect’ After Trump Remarks
Barron Trump Emerges as Key Remote Witness in UK Assault and Rape Trial
×