Why Labour has no option but to tax wealth

Keir Starmer’s party is starting to echo Jeremy Corbyn’s in targeting the rich – but only because there is nowhere else to turn, writes Rob Merrick

Don’t expect the party to put forward any detailed tax plans at its upcoming conference (EPA)

It could have been Jeremy Corbyn at the microphone, when Labour’s shadow chancellor attacked the people “shielded” from tax rises while the low-paid got whacked with a national insurance hike to rescue the NHS and social care.

“Those who get their income from financial assets, stocks and shares, sales of property, pension income, annuity income, interest income, property rental income, inheritance income,” Rachel Reeves thundered.

“I do not doubt that the champagne glasses were clinking in Mayfair last night toasting the chancellor, ” she said, after the hike was announced – in the closest Keir Starmer’s Labour Party gets to class war.

Asked later whether he favoured such wealth taxes, the Labour leader himself replied: “I think we should look at all of these options.”

So, is Labour committed to targeting wealth when it next faces the voters? The answer is officially “no” – but a resounding “yes” in reality, it seems.

Consider the picture when the UK next goes to the polls for a general election in May 2024, or earlier as Mr Johnson grabs back the power to fire the starting gun whenever he likes.

Virtually no one seems to think the NHS waiting list mountain – 5.6 million and climbing – will have been conquered and even fewer think the social care scandal will be over.

The grim reality is a long, slow slog back to early treatments, which means social care – where around 1.6 million people are being denied the help they need – will have received no meaningful bailout.

In those circumstances, Labour will have no option but to announce more funds and scrabble for other cash cows, having criticised targeting income through the national insurance hike.

Many suspect Sir Keir, in trying to shed the Corbyn baggage, would rather not go into the next election with a “squeeze the rich” message and no decisions have yet been made about tax.

But the way the wind is blowing is clear.

Even the Tony Blair Institute – not exactly famous for supporting leftie tax hikes – is backing heftier capital gains tax and tougher property levies, replacing regressive council tax.

Don’t expect Labour to put forward any detailed tax plans at the party conference starting next weekend, given the immediate pressure has already eased on Boris Johnson’s inadequate social care plans.

But, come 2023 or 2024, the well-heeled people with big properties, tasty assets, huge pensions and lucrative inheritances will all be in the party’s sights. There is nowhere else to turn.