Keir Starmer says Labor government would raid ‘big shoulders’ second homeowners and shareholders to fund the NHS and improvements in social care
- Opposition leader indicated he would look at increasing capital gains tax
- It would target income from ‘real estate, from stocks and shares and dividends’
- It would be part of a series of tax change plans unveiled at this week’s conference
- Sir Keir told BBC: ‘Those with the broadest shoulders should pay’
Keir Starmer launched a potential tax raid on homes and stocks under a Labor government today, as he declared it was time ‘those with the broadest shoulders pay’.
The opposition leader’s comments were the latest sign that the party would raise capital gains taxes and explore other means of pumping money into the NHS and making improvements to the welfare system if he came to power.
Homeowners do not pay tax on the sale of their main home, but it is applied to all other properties they own, such as vacation homes and rental properties, when they are sold.
And it would directly affect five of its own ministers, whose financial statements show they own rental properties or shares.
Speaking about Labour’s plans for the NHS and care today, Mr Starmer told BBC Radio 4’s Today programme: ‘We’ve said those with the broadest shoulders should pay.
The opposition leader indicated he would look at raising the capital gains tax and other means of pumping money into the NHS and improvements to the social care system if he came to power.
Shadow Chancellor Rachel Reeves used her speech to push for corporate tariffs to be cut, forcing tech giants to pay their taxes and recovering money wasted on ‘failed’ Covid contracts.
CGT Increase Would Hit Labor Shadow Cabinet – But Not Keir
If Sir Keir makes it to number 10 and raises the capital gains tax, he would personally avoid a hit after disposing of a house in Surrey that he co-owns.
He owns a house in London, but also owned a half share of his parents’ 1930s semi-detached house, which was up for sale last year for £480,000 and sold in July.
The sale is listed in its entry in the Register of Members’ Interests, although the final sale price is not disclosed.
The records also show that Justice Minister David Lammy owns rental property in Tottenham, his North London constituency, which earns an income of more than £10,000 a year.
Likewise, Emily Thornberry co-owns a flat in Guildford, Surrey, the town where she grew up.
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 small farm in Camarthenshire and Scottish counterpart Ian Murray has a flat in Edinburgh.
“We’ve said that means we have to look at those who get their income from real estate, from stocks and dividends.”
It is said to be part of a series of tax change plans unveiled this week at the Labor Party Conference.
Shadow Chancellor Rachel Reeves confirmed on Sunday that she plans to raise capital gains taxes to target “people who get their income through stocks and owner-occupied homes.”
On Monday, she revealed plans for a tax break review, arguing that, with more than 1,000 exemptions, the system is ripe for reform. The move could end tax breaks worth £174 billion a year.
Currently, people pay capital gains tax at different rates depending on their taxable income
For higher-rate payers, it’s 28 percent for homes and 20 percent for other assets. For those who earn less, the rate varies depending on your income, the size of the profit, and where it came from.
Ms Reeves also pledged to scrap corporate rates, force tech giants to pay their taxes and recover money wasted on ‘failed’ Covid contracts.
A Labor government would look at existing tax breaks and if they don’t ‘benefit the taxpayer or the economy, we will scrap them’.
But she insisted that Labor has “no plans” to raise income taxes, despite Keir Starmer having put hares on the run by saying the move is not “off the table”.
She told the Brighton conference: ‘We will make the tax system fairer so that the burden is not only on the wages of the working people, but also the people at the top pay their fair share.
Conference, how can it ever be right that a £27,000 police officer is charged at 32 pence in the pound, but someone who earns many times more from buying and selling stocks and shares should pay only 20 pence in the pound?
“That won’t last with Labour. I promise that as chancellor I will not balance the books on the backs of working people.’