London Daily

Focus on the big picture.
Friday, Jan 23, 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
Trump Reverses Course and Criticises UK-Mauritius Chagos Islands Agreement
Elizabeth Hurley Tells UK Court of ‘Brutal’ Invasion of Privacy in Phone Hacking Case
UK Bond Yields Climb as Report Fuels Speculation Over Andy Burnham’s Return to Parliament
TikTok’s U.S. Escape Plan: National Security Firewall or Political Theater With a Price Tag?
Trump’s Board of Peace: Breakthrough Diplomacy or a Hostile Takeover of Global Order?
Trump’s Board of Peace: Breakthrough Diplomacy or a Hostile Takeover of Global Order?
The Greenland Gambit: Economic Genius or Political Farce?
The Greenland Gambit: Economic Genius or Political Farce?
The Greenland Gambit: Economic Genius or Political Farce?
Will AI Finally Make Blue-Collar Workers Rich—or Is This Just Elite Tech Spin?
Prince William to Make Official Visit to Saudi Arabia in February
Prince Harry Breaks Down in London Court, Says UK Tabloids Have Made Meghan Markle’s Life ‘Absolute Misery’
Malin + Goetz UK Business Enters Administration, All Stores Close
EU and UK Reject Trump’s Greenland-Linked Tariff Threats and Pledge Unified Response
UK Deepfake Crackdown Puts Intense Pressure on Musk’s Grok AI After Surge in Non-Consensual Explicit Images
Prince Harry Becomes Emotional in London Court, Invokes Memory of Princess Diana in Testimony Against UK Tabloids
UK Inflation Rises Unexpectedly but Interest Rate Cuts Still Seen as Likely
AI vs Work: The Battle Over Who Controls the Future of Labor
Buying an Ally’s Territory: Strategic Genius or Geopolitical Breakdown?
AI Everywhere: Power, Money, War, and the Race to Control the Future
Trump vs the World Order: Disruption Genius or Global Arsonist?
Trump vs the World Order: Disruption Genius or Global Arsonist?
Trump vs the World Order: Disruption Genius or Global Arsonist?
Trump vs the World Order: Disruption Genius or Global Arsonist?
Arctic Power Grab: Security Chessboard or Climate Crime Scene?
Starmer Steps Back from Trump’s ‘Board of Peace’ Amid Strained US–UK Relations
Prince Harry’s Lawyer Tells UK Court Daily Mail Was Complicit in Unlawful Privacy Invasions
UK Government Approves China’s ‘Mega Embassy’ in London Amid Debate Over Security and Diplomacy
Trump Cites UK’s Chagos Islands Sovereignty Shift as Justification for Pursuing Greenland Acquisition
UK Government Weighs Australia-Style Social Media Ban for Under-Sixteens Amid Rising Concern Over Online Harm
Trump Aides Say U.S. Has Discussed Offering Asylum to British Jews Amid Growing Antisemitism Concerns
UK Seeks Diplomatic De-escalation with Trump Over Greenland Tariff Threat
Prince Harry Returns to London as High Court Trial Begins Over Alleged Illegal Tabloid Snooping
High-Speed Train Collision in Southern Spain Kills at Least Twenty-One and Injures Scores
Meghan Markle May Return to the U.K. This Summer as Security Review Advances
Trump’s Greenland Tariff Threat Sparks EU Response and Risks Deep Transatlantic Rift
Prince Harry’s High Court Battle With Daily Mail Publisher Begins in London
Trump’s Tariff Escalation Presents Complex Challenges for the UK Economy
UK Prime Minister Starmer Rebukes Trump’s Greenland Tariff Strategy as Transatlantic Tensions Rise
Prince Harry’s Last Press Case in UK Court Signals Potential Turning Point in Media and Royal Relations
OpenAI to Begin Advertising in ChatGPT in Strategic Shift to New Revenue Model
GDP Growth Remains the Most Telling Barometer of Britain’s Economic Health
Prince William and Kate Middleton Stay Away as Prince Harry Visits London Amid Lingering Rift
Britain Braces for Colder Weather and Snow Risk as Temperatures Set to Plunge
Mass Protests Erupt as UK Nears Decision on China’s ‘Mega Embassy’ in London
Prince Harry to Return to UK to Testify in High-Profile Media Trial Against Associated Newspapers
Keir Starmer Rejects Trump’s Greenland Tariff Threat as ‘Completely Wrong’
Trump to hit Europe with 10% tariffs until Greenland deal is agreed
Prince Harry Returns to UK High Court as Final Privacy Trial Against Daily Mail Publisher Begins
Britain Confronts a Billion-Pound Wind Energy Paradox Amid Grid Constraints
×