Rachel Reeves Faces Tax Hike Concerns as Downing Street Refuses to Rule It Out

Rachel Reeves has found herself at the centre of growing speculation over a potential tax raid on the wealthy, after a Number 10 statement raised more than a few eyebrows. It all kicked off just hours after former Labour leader Neil Kinnock hinted that Keir Starmer might be open to exploring the idea of a wealth tax, sending the rumour mill into overdrive.

Downing Street’s spokesperson didn’t exactly help put the fire out either. When pressed on the matter, they said, “We have repeatedly said that those with the broadest shoulders carry the greatest burden, and the choices we’ve made reflect that.” And when pushed for a clearer answer, they doubled down, repeating, “The existing position is what I’ve just said a couple of times.”

The spokesman also added, “The Government is committed to making sure the wealthiest in society pay their fair share of tax. And that’s why the Chancellor announced a series of reforms in the last Budget to help fix the public finances in as fair a way as possible.” Which, let’s be honest, only added fuel to the already smouldering speculation, reported Birmingham Live.

Rachel Reeves has tried to shut the idea down before. Speaking to The Telegraph earlier this year, she was clear: “We’re not interested in a wealth tax. Our priority is to grow the economy and that’s the way that you make working people better off and secure better public finances.”

She even threw a bit of shade at all the build-up before the Spring Statement, adding, “There was lots of speculation ahead of the Spring Statement, including in your paper, about all the taxes I was going to raise. What taxes did I raise in the Spring Statement? None.”

But despite that, the whispers won’t go away. The thought of a new wealth tax has some high net-worth individuals seriously concerned, especially with fears that such a move could drive another wave of millionaires and billionaires out of the UK. The Prime Minister’s spokesperson tried to offer some reassurance, insisting the country remains “the best place in the world to invest in”.

Then came Lord Kinnock’s weekend comments to Sky News, which really stirred the pot. He suggested Labour shouldn’t be boxed in by its current fiscal constraints, saying, “The appearance has been given that they are bogged down by their own imposed limitations.”

He went on to say there are paths the Government could take that the public would likely get behind, like an asset tax aimed at the ultra-wealthy. “They’ve just gone through the roof and they’ve been barely touched,” he said, speaking about soaring asset values. “Now, you wouldn’t have to touch assets of under £6million or £7million, so people’s houses would be secure.”

He even floated a specific idea — a 2 per cent levy on assets over £10 million, something he claims could rake in £10 to £11 billion a year.

Don’t Miss These:

• Ted Cruz Warns Trump’s Drone Plan Could Derail Major Defense Bill
• New Medical Tests Cast Doubt on Wendy Williams’ Dementia Diagnosis
• How to Personalize Your Custom Suit for Any Occasion
• Kansas Mother Accused of Killing 6-Year-Old Adopted Daughter and Hiding Her Body in Backyard for 4 Years
• Trade or Power? The Supreme Court Tests the Limits of Trump’s Tariff Authority