Rachel Reeves Pushed to Launch Controversial New Tax Brits Have Never Paid Before

Believe it or not, a huge chunk of the public is actually on board with a new wealth tax. According to a recent YouGov poll for Oxfam, more than three-quarters of Britons say they’d back the move, with the idea being that it could raise billions for public services without touching most of our wallets.

Now, Chancellor Rachel Reeves is facing mounting pressure from within her party to make it happen. Labour backbenchers and grassroots activists alike are pushing for her to slap a levy on the ultra-wealthy, especially with the Autumn Budget fast approaching, reported the Express.

But not everyone’s convinced it’s the silver bullet. Critics are calling it a potential disaster, warning that it could do more harm than good. To make matters more complicated, Reeves is stuck between a rock and a hard place. The country’s finances are in a mess, thanks to a cocktail of Tory mismanagement, economic headwinds, and global trade drama (thanks for that, Donald Trump).

With spending cuts already sparking outrage – just look at the backlash over plans to tighten disability and sickness benefits in the Spring Statement – Reeves is under pressure to find a less painful way to plug the gap. A wealth tax is starting to look like the least worst option for many in Labour circles.

The idea is to target only the very richest – around 20,000 people in the first year – with a tax on UK assets above £10 million. Campaigners like former City trader Gary Stevenson argue it could rake in up to £24 billion a year, helping to shore up struggling services and support households in need.

On paper, it sounds like a no-brainer: big money from a tiny group of super-rich individuals, with the rest of us untouched. Even the Greens are backing it.

But there are big challenges. First off, HMRC would have its work cut out. To make the tax work, the government would need to assess the total wealth of not just 20,000 people but tens of thousands more – every single year – to see who makes the cut. That’s everything from homes and businesses to artwork, jewelry, and even yachts. Asset values shift constantly, so it’s not a one-off job.

And then there’s the risk of it creeping further down the ladder. Critics point to the inheritance tax, which has had the same threshold since 2009 and is frozen until at least 2030. Could the same happen with a wealth tax?

Some experts are already sounding the alarm. One warns it could “make everyone poorer” by pushing out the wealth creators – and we’ll be hearing more from the tax pros on both sides of the debate in the coming days.

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