Report Proposes Wealth Tax and Income Tax Increase to Fund Government

By the Editorial Team · Wednesday, July 22, 2026

A report suggests introducing a wealth tax on affluent families alongside raising the top income tax rate from 45% to 50% to fund government spending and reduce tax avoidance. Labour Party figure Mr. Burnham has hinted his administration may seek increased taxes on the wealthy, highlighting ongoing discussions about fair revenue measures.

A recent report proposes the introduction of a wealth tax alongside an increase in the top rate of income tax to help fund government spending. The plan calls for HM Revenue and Customs (HMRC) to assess the wealth of affluent families by evaluating a broad range of assets, including property, private businesses, pension wealth, art, land, and charitable holdings, with the goal of reducing tax avoidance.

According to the authors of the report, gathering this detailed data on wealth would not impose significant additional costs on HMRC, as much of the necessary information is already being collected. In addition to the wealth tax proposal, the report recommends increasing the highest income tax rate from the current 45% to 50%.

Labour Party figure Mr. Burnham has neither confirmed nor dismissed the prospect of a wealth tax, indicating in a recent conversation with former footballer and television presenter Gary Lineker that his administration might consider requesting “a little more” in taxation from wealthier individuals to support public finances. The discussion reflects ongoing debates within the government on balancing fiscal responsibility with equitable revenue generation.

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