Chancellor Rachel Reeves has deliberately declined to rule out the introduction of a wealth tax ahead of the autumn Budget, despite escalating borrowing pressures.
Chancellor Rachel Reeves has refused to rule out a wealth tax, despite pressure from former Conservative Chancellor Lord Lamont, who warned that speculation around such a policy could dent market confidence.
During a House of Lords session, Lamont criticised Labour for not dismissing proposals like former party leader Neil Kinnock’s call for a levy on the wealthy. He argued that even the suspicion of a wealth tax could undermine economic stability and urged Reeves to rule it out entirely.
Reeves declined, saying:
“In our manifesto, we made a commitment around the key taxes that working people pay — income tax, national insurance and VAT.”
Pressed further, she added that naming which taxes won’t rise would only fuel speculation about others:
“It is right… that tax is a matter for the Budget and we will set out our policy there.”
Her remarks leave the door open to potential new levies in the autumn Budget, despite earlier campaign pledges not to raise core taxes.
Bottom line: Reeves is carefully managing the narrative. By not ruling out a wealth tax, she retains flexibility to raise funds if needed — but the final decision likely hinges on economic forecasts, market stability, and political constraints by the time of the November Budget.
