London Daily

Focus on the big picture.
Thursday, Jun 25, 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 Financial Services Reform Debate Intensifies Over Ministerial Regulatory Powers
UK Energy Price Cap Rise Expected to Keep Inflation Above Target Through 2026
UK Biohacking and AI Wellness Trends Drive Surge in Personal Health Monitoring
UK Social Care Sector Sees Workforce Shift as Overseas Recruitment Masks Domestic Labour Decline
Nuffield Trust Warns UK Health Budgets Remain Vulnerable Despite Record Spending Levels
UK Coal Pension Surplus Debate Returns to Parliament as Reform UK MP Seeks Clarity on Distribution
UK MPs Consider E-Petition Calling for NHS Newborn Screening for Spinal Muscular Atrophy
UK Parliament Debates E-Petition Calling for Inquiry Into Pro-Israel Influence in Politics
UK Economy Grew 0.6 Percent in Q1 2026 but Business Sentiment Weakens Over Geopolitical Risks
UK Financial Services Bill Enters Lords Committee Stage With Expanded Ministerial Powers
UK Armed Forces Bill Advances With Plans for Defence Housing Service and Drone Defence Measures
UK Treasury Proposes Higher Electricity Generator Levy and Updated Mileage Allowance Rules
UK Parliament Debates Health Bill Amid Persistent GP Access and Patient Satisfaction Concerns
UK Financial Sanctions Regulator Signals Faster, Intelligence-Led Enforcement Strategy
British Chambers of Commerce Warns Business Confidence Crisis Is Dampening UK Investment
UK Parliament Debates Carbon Budget Order as Pressure Mounts on Net Zero Delivery
UK Energy Price Volatility Reinforces Pressure for Faster Electrification of Economy
UK Defence and Aerospace Strategy Gains Momentum as Keir Starmer Pushes Industrial Cooperation in Berlin
Department for Environment, Food and Rural Affairs Unveils £53 Million Investment in Farming Innovation
Foreign Secretary Announces Medical Evacuations and University Support for Palestinians in Gaza
Government-Commissioned Report Highlights Economic Exposure to Climate-Driven Fossil Fuel Price Shocks
Climate Change Committee Warns UK Is Off Track on Emissions Cuts and Calls for Faster Decarbonisation
Prime Minister Keir Starmer Calls for Deeper UK-EU Defence and Industrial Cooperation in Berlin Address
Met Office Issues Red Extreme Heat Warning as Temperatures Set to Surpass 37°C in England and Wales
Bank of England Holds Interest Rates at 3.75% as Inflation Outlook Remains Uncertain
UK Announces New Military Infrastructure at Catterick to Support Engineer Regiment Relocation
University of Reading Ranked Among Top 100 Globally for Sustainability Impact
UK Launches Counter-Fraud Taskforce to Investigate Covid Loan Scams
UK Government Introduces Customs and Tax Reforms to Support High Street Retailers
Jonathan Haskel Nominated as Chair of the UK Office for Budget Responsibility
UK Government Expands Powers to Recover Benefit Debt and Tackle Welfare Fraud
Labour Party Leadership Contest Intensifies as Andy Burnham and Ed Miliband Clash Over Economic Direction
Rail Operators Urge Essential Travel Only as Extreme Heat Threatens UK Network Stability
United Kingdom Issues Red Extreme Heat Warning as Temperatures Forecast to Reach 38°C
Keir Starmer Announces Resignation as UK Prime Minister Amid Deepening Political Instability
UK Biotechnology Sector Receives Increased Public Funding to Support Regional Growth
Police Chiefs Update National Protest Management Guidelines Amid Rising Demonstration Activity
UK Aviation Regulator Expands Support for Regional Airports to Strengthen Domestic Routes
CMA Launches Investigation Into Retail Pricing Across UK Grocery Sector
UK Energy Operator Warns of Winter Supply Pressures Despite Stable Overall Grid Outlook
UK Research Council Expands Funding for Regional Biotechnology and Life Sciences Clusters
UK Compensation Scheme for Post Office Horizon Scandal Reaches 80 Percent Completion
Police Chiefs Issue Updated National Guidance on Managing Large Public Demonstrations
UK Expands Regional Airport Funding Scheme to Boost Domestic Connectivity
UK Competition Watchdog Launches Inquiry Into Grocery Pricing Practices
National Grid Warns of Tight Energy Management Needs During Upcoming Winter Peak Demand
UK Education Department Introduces National Standards for AI Use in Secondary Schools
UK High Court Clears North Sea Carbon Capture Project After Final Legal Challenge Fails
Northern Ireland Leaders Hold Emergency Talks on Trade Disruption Under Windsor Framework
Welsh Government Moves to Expand Social Housing in Response to Severe Affordability Pressures
×