Keir Starmer says Labour government would raid second homeowners and shareholders ‘with the broadest shoulders’ to fund the NHS and improvements to social care
- Opposition leader signalled that he would look at increasing capital gains tax
- It would target income from ‘property, from stocks and shares and dividends’
- It would form part of a raft of tax change plans unveiled at Conference this week
- Sir Keir told BBC: ‘Those with the broadest shoulders should pay’
Keir Starmer set up a potential tax raid on homes and shares under a Labour Government today as he declared it was time ‘those with the broadest shoulders should pay’.
The Opposition leader’s comments were the latest sign that the party would increase capital gains tax and examine other means that woudl allow it to pour money into the NHS and improvements to the social care system is he were to enter power.
Homeowners don’t pay the tax on sales their main homes but it is applied to any other property they own such as holiday homes and rental properties, when they are sold.
And it would directly affect five of his own ministers, whose financial declarations show they own rental properties or shares.
Speaking about Labour’s plans for the NHS and care today, Mr Starmer told BBC Radio 4’ds Today programme: ‘We have said that those with the broadest shoulders should pay.
The Opposition leader signalled that he would look at increasing capital gains tax and other means in order to pour money into the NHS and improvements to the social care system is he were to enter power.
Shadow Chancellor Rachel Reeves used her speech to commit to scrapping business rates, forcing tech giants to pay their taxes and clawing back money wasted on ‘failed’ Covid contracts.
CGT hike would hit Labour shadow Cabinet – but not Keir
If Sir Keir makes it to No10 and raises Capital gains Tax he would personally avoid taking a hit, after getting rid of a house he co-owns in Surrey.
He owns a home in London but also had a half-share of his parents 1930s semi-detached home, which was put up for sale last year for £480,000 and sold in July.
The sale is in his entry on the register of MPs interests, though it does not disclose the final sale price.
The records also show that shadow justice secretary David Lammy owns a rental property in Tottenham, his north London constituency, that provides an oncome of more than £10,000 a year.
Similarly Emily Thornberry co-owns a flat in Guildford, Surrey, the town where she was raised.
Shadow Housing Secretary Lucy Powell rents out a room in her London flat and is also a shareholder in New Road Management, a property management company.
Shadow Welsh secretary Nia Griffiths owns a smallholding in Camarthenshire and Scottish counterpart Ian Murray has a flat in Edinburgh.
‘We have said that means we have to look at those that get their income from property, from stocks and shares and dividends.’
It would form part of a raft of tax change plans unveiled at the Labour Party Conference this week.
Shadow Chancellor Rachel Reeves confirmed on Sunday she is looking to increase capital gains tax to target ‘people who get their incomes through stocks and shares and buy-to-let properties’.
On Monday she unveiled plans for a review of tax breaks, arguing that, with more than 1,000 reliefs in place, the system is ripe for reform. The move could end tax breaks worth £174billion a year.
Currently people pay Capital Gains Tax at different rates depending on their taxable income
For higher rate payers it is 28 per cent for residential property and 20 per cent for other assets. For those earning less, the rate varies depending on your income, the size of the gain and where it came from.
Ms Reeves also committed to scrapping business rates, forcing tech giants to pay their taxes and clawing back money wasted on ‘failed’ Covid contracts.
A Labour government would look at existing tax breaks and if they do not ‘deliver for the taxpayer or for the economy then we will scrap it’.
But she insisted that Labour has ‘no plans’ to increase income tax, despite Keir Starmer setting hares running by stating the move is not ‘off the table’.
She told the conference in Brighton: ‘We will make the tax system fairer, ensuring that the burden isn’t just falling on the wages of working people, but that those at the top pay their fair share, too.
‘Conference, how can it possibly be right that a police constable on £27,000 should be taxed at 32 pence in the pound, but someone making many times more from buying and selling stocks and shares should pay just 20 pence in the pound?
‘That will not stand with Labour. I pledge that as chancellor I will not be balancing the books on the backs of working people.’