Allies of Andy Burnham are reportedly examining a range of wealth tax proposals, including a potential increase to inheritance tax, as the UK government faces rising public spending commitments. The options being considered could significantly impact wealthy individuals and those looking to emigrate.

One proposal, previously endorsed by the Labour-linked Institute for Public Policy Research on which Burnham served, suggests raising inheritance tax from 40% to 50%. This increase, applied to estates exceeding £325,000, could generate an estimated £1.9 billion annually. The report cited links between income inequality and poor health as a rationale for such measures, suggesting funds could subsidize healthy foods.

Further proposals include the potential imposition of a 2% annual levy on assets valued above £10 million. This concept, modeled on France's former wealth tax, has been discussed by financiers who fear a Burnham government might implement it, possibly alongside an 'exit tax' for those attempting to avoid the new regime by emigrating.

Financiers are reportedly making contingency plans for a wealth tax targeting assets over £10 million, and an exit tax on individuals departing the UK. This potential exit tax could charge 20% on business assets for those emigrating to escape higher taxation.

Burnham himself has indicated that while his party's manifesto rules out increases to National Insurance, income tax, or VAT, there is "some room" for "movement on tax." He has also previously suggested a case exists for reintroducing a 50 pence income tax rate.

Other potential revenue-raising measures being explored include higher taxes on smoking, drinking, processed foods, and gambling, which could collectively raise over £10 billion. Additionally, there are discussions about potentially lowering the threshold for a mansion tax to properties valued at £1.5 million, from the current £2 million, which would make an additional 150,000 families liable for property taxes.

Conservative Party Chairman Kevin Hollinrake criticized the reported tax considerations, stating that Burnham's "cost is rising by the day." He argued that such measures would punish individuals who "work hard, save responsibly and want to pass something on to the next generation." Hollinrake suggested welfare reform as an alternative to increasing taxes.

A source close to Burnham has stated that "nothing on inheritance tax" will be included in the initial July package of measures.