Wealth tax advocate Gary Stevenson has reportedly been approached by the Labour party and Andy Burnham's team to discuss economic policy, according to social media speculation. Stevenson himself indicated in a recent YouTube video that individuals from the Labour party, who had previously not responded to his communications, have recently engaged in meetings with him to discuss the implementation of a wealth tax.
Stevenson, the author of "Trading Game," has been a vocal proponent of a 2 percent annual tax on individuals in Britain possessing total assets exceeding £10 million. He defines a wealth tax as a levy on the total value of a person's assets over a government-set threshold, which can include cash, property, land, stocks, businesses, and other valuable possessions. Stevenson claims this tax would exclusively target the "ultra-wealthy," representing approximately 0.04 percent of the population, and could generate between £22 billion and £24 billion annually for the Treasury.
He argues that Britain's current tax system unfairly burdens working individuals while allowing significant accumulated or inherited wealth to grow with minimal taxation. Stevenson also supports taxing capital gains and dividends at the same rates as income tax, asserting that "money made by money" should not be more favorably treated than income earned through work. Additionally, he advocates for more aggressive inheritance taxation and the closure of tax loopholes for trusts, citing instances where wealthy families pass on substantial sums tax-free. Stevenson has also suggested that even if the ultra-wealthy relocate to tax havens, their assets within the UK, such as real estate or businesses, should remain taxable at the source.
Stevenson stated in his video that Britain is closer than ever to introducing a wealth tax and that he has been actively lobbying the Labour party on this issue for about three years. However, he clarified that he has not spoken directly with Andy Burnham. This publication has contacted Stevenson for comment, and it remains unconfirmed whether he has been officially approached by Labour or Burnham's team to serve as an economic adviser.
Concerns have been raised about the potential economic impact of a wealth tax. Asset manager Rathbones has warned that a new tax on wealth and property could be "economically damaging to the UK," potentially leading to the flight of £100 billion from the country, which could harm growth, investment, and jobs. There are fears that a shift to the left under a leader like Burnham could lead to a significant increase in the tax burden. Chancellor Rachel Reeves has already implemented tax hikes totaling £75 billion since taking office, bringing the tax burden to its highest point since World War II. Economist Mohit Kumar noted that "Burnham policies are left leaning" and that "if the new Chancellor is not credible, it would raise concerns over deficits and borrowing." He added that while Burnham has pledged to respect fiscal rules, the funding for any additional spending remains unclear, and further tax increases could become counterproductive.