London Daily

Focus on the big picture.
Thursday, Jul 16, 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
UK Housing Reform Debate Intensifies Over Tenant Protection Measures
UK Defence Official Challenges Russian Narrative on NATO Readiness and European Security
UK Names Independent Member to Judicial Pension Board to Strengthen Oversight
UK Parliamentary Committee Sets New Framework for Select Committee Leadership Roles
UK Government Pushes Energy Savings Through School Solar Expansion Plan
UK Committee Reviews Future of Gaelic Broadcasting and Language Support
UK Government Expands Industrial Skills Support in Wales as Steel Sector Faces Change
UK Rejects Russian Claims That European Defence Spending Is Aggressive
UK Schools and Gaelic Broadcasting Among Areas Reviewed in New Parliamentary Inquiries
UK Housing Committee Calls for Stronger Tenant Protections Under Rental Reform Plans
UK Government Faces Pressure for Stronger Oversight After South East Water Failings Report
UK Parliament Opens Inquiry Into Safety of Women and Girls on Public Transport
UK Defence Ministry Appoints Interim Chief Defence Medical Officer During Transition Period
UK Government Announces Five Million Pound Skills Programme for Young People in Port Talbot
UK Government Launches Solar Programme to Cut Energy Costs for Schools
Met Office Warns Extreme Weather Is Becoming More Common Across the UK
UK Government Faces Internal Debate Over New Chancellor Appointment Under Andy Burnham
Andy Burnham Set to Become UK Prime Minister After Keir Starmer’s Resignation
UK Economy Grows Slightly in May as Supply Chain Disruptions Continue to Weigh on Industry
British Steel Moves Into UK Public Ownership to Protect Domestic Steel Production and Jobs
Spain in Ecstasy: "We Feel Unbeatable, We Taught the Whole World a Lesson"
Spain and UK Dismantle Gibraltar Border Following Landmark Schengen Integration Treaty
Church of England Rejects Plan to Rewild Thirty Percent of Land by 2030
UK Parliament Examines Future of Gaelic Broadcasting in Scotland
Thames Water Faces Criticism Over Four Million Pounds in Bonus Payments
South East Water Crisis Puts UK Water Regulation Under Renewed Scrutiny
UK Report Highlights Racial Inequality in Homelessness Support Services
UK Government Defends Proposed Social Media Curfew for Teenagers Despite Criticism
Reform UK Gains Recognition as Major Political Party in New Polling
Labour Party Faces Internal Divisions Over Gaza Policy and Asylum Reform
Experts Warn UK Housing and Transport Infrastructure Is Unprepared for Rising Extreme Heat
UK Human Rights Committee Begins Review of Immigration and Asylum Bill
UK Parliament Launches Inquiry Into Declining High Streets Across England
Bank of England Governor Warns of Growing AI Risks to Global Financial Security
UK Public Finance Institutions Mobilize Fifty Billion Pounds to Support Growth and Jobs
UK Parliament Opens Inquiry Into Long-Term Strategy Toward Russia
UK-India Trade Agreement Takes Effect With Zero-Duty Access for Nearly All Indian Exports
Forget Tinder: The Surprising Platform Where People Find Love
UK Government Faces Growing Debate Over Local Control of Immigration Enforcement
UK Biodiversity Forum Highlights Business Need to Protect Natural Environment
UK Parliament to Consider Workplace Temperature Limits Amid Climate Concerns
UK Parliament Considers Independent Immigration Appeals Authority Proposal
BBC Charter Renewal Scrutiny Intensifies as Parliament Reviews Broadcaster’s Future
Parliament Reviews Future of UK Maternity and Neonatal Care Services
UK-India Trade Accelerator Launched to Help Smaller Firms Expand Into Indian Market
UK Business Leaders Meet in Edinburgh to Address Economic Risks From Biodiversity Loss
UK Parliament Prepares for Sir Keir Starmer’s Final Prime Minister’s Questions Before Leadership Transition
Green Party-Led Lewisham Council Moves Against Cooperation With Home Office Immigration Raids
UK Government Faces Parliamentary Pressure Over Capita Contracts in Shared Services Programme
UK Economy Expected to See Modest Growth as OECD Highlights Fiscal and Global Risks
×