Jonathan Reynolds slams wealth tax as ‘daft' in broadside against Labour left
In a podcast interview with GB News, the business secretary told those on the left of the Labour party: 'Get serious!'
Reynolds insisted that much of Labour policy already constitutes taxes on the wealthy.
He said: 'This Labour Government has increased taxes on wealth as opposed to income – the taxes on private jets, private schools, changes through inheritance tax, capital gains tax.'
The business secretary said that this kind of tax – alongside the existing taxes on assets and wealth – has no equivalent around the world: 'Switzerland has a levy, but they don't have capital gains or inheritance tax.
'There's no kind of magic [tax]. We're not going to do anything daft like that.
Reynolds added: 'I say to people: 'Be serious about this.' The idea you can just levy everyone… What if your wealth was not in your bank account, [what if it was] in fine wine or art?'
To wealth tax or not to wealth tax?
Open speculation around a wealth tax was sparked by an intervention made by former Labour leader Lord Kinnock.
Kinnock criticised the government's 'lack of vision' and called for a two per cent tax on those with more than £6m.
Senior figures in the Labour Party – all the way up to Downing Street – have since publicly toyed with the idea of a wealth tax.
There was even another Kinnock in the mix – Stephen, the health minister – who told LBC that Rachel Reeves is looking 'very carefully' at a wealth tax.
A Number 10 spokesperson said following Kinnock's comments: 'We have repeatedly said those with the broadest shoulders carry the greatest burden and the choices we have made reflect that.'
'Those with the broadest shoulders' has become a familiar refrain to media watchers as Labour spokespeople have grappled with the issue on air.
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