A group of 30 cross-party parliamentarians have signed a letter urging Chancellor, Rachel Reeves, to impose an annual wealth tax of 2 per cent on assets over £10m in the Autumn Budget.

The group argued that such a tax would generate a large stream of revenue, and that its specific proposal would raise £24bn a year, to help fill the ‘black hole’ in public finances.

A dozen Labour MPs and two Labour peers, alongside suspended MPs including former Labour leader, Jeremy Corbyn, and former Shadow Chancellor, John McDonnell, backed the call.

The letter was also supported by MPs from the Greens, Plaid Cymru, Social Democratic and Labour Party, Alliance, and one Liberal Democrat MP.

Alongside the wealth tax, the parliamentarians called for the equalisation of capital gains and income tax rates, which they said could raise £16.7bn a year and “would rectify unfairness in the tax system”.

The letter stated that billionaire wealth had “soared” in recent years, rising by almost £150bn between 2020 and 2022, but that revenue from wealth taxes had remained “stagnant” at around 3.4 per cent of UK GDP.

“This stands in contrast to other trends in the tax system, meaning that the richest are relatively under-taxed,” the letter continued.

“This is deeply unfair and immoral; in an age of climate and economic crises, where public funds are desperately needed, it is necessary that we redress this imbalance.

“The transformative potential of taxes on extreme wealth is clear, and appetite for them is growing.”

It added that governments around the world, including Norway, Italy, and Brazil, were considering fiscal measures to ‘fairly’ tax the super-rich, and argued that the UK should follow suit.

The letter concluded: “We urge you to take the bold decisions necessary to deliver the public funding that the UK desperately needs.

“As the first Budget of a new government, this is a key opportunity to lay the foundations for a fairer, more sustainable, and thriving economy.”

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