- Wes Streeting, the former health secretary, has put forward a proposal for a "wealth tax that works" as part of his campaign for the Labour leadership, aiming to garner support from the party's left wing.
- His plan involves aligning capital gains tax with income tax rates, which would see higher and additional rate taxpayers paying 40 per cent and 45 per cent respectively on their gains.
- Streeting argued that the existing tax system is unjust, favouring wealth accumulation over earned income, and highlighted the disparity where a cleaner pays a higher tax rate than a landlord on asset growth.
- The proposal also includes provisions to safeguard genuine entrepreneurs with reduced capital gains tax rates and to eliminate loopholes used to misrepresent income as capital gains, with the potential to generate up to £12 billion annually.
- He underscored his working-class background, expressing a commitment to enhancing life chances for children and contrasting his own upbringing with the current housing challenges faced by families in temporary accommodation.
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