The government has declined to rule out the possibility of a new wealth tax after former Labour leader, Neil Kinnock, suggested that one should be introduced.

Kinnock called for a 2 per cent tax on assets over £10m when speaking to Sky News on Sunday, arguing that it would raise up to £11bn a year.

When pressed by journalists this week as to whether the government would consider bringing in a wealth tax for the most affluent individuals in the UK, a spokesperson for Prime Minister, Sir Keir Starmer, did not categorically rule it out.

“The government is committed to the wealthiest in society paying their share in tax,” the spokesperson said.

“The Prime Minister has repeatedly said those with the broadest shoulders should carry the largest burden.”

He noted that the government had introduced measures to raise cash from ultra high net worth individuals, including changes to the non-dom regime and taxes on private jets, and that Chancellor, Rachel Reeves, had previously rejected a new wealth tax.

However, when pushed as to whether he could rule out a future wealth tax, the spokesperson said: “I’m not going to write a future Budget for you now.”

The calls for a wealth tax come as pressure builds on Reeves to increase taxes after the government’s U-turns on welfare reforms and winter fuel payments, as she seeks to fill a fiscal hole of potentially £20bn.

The rumours have increased concern about a further rise in the exodus of wealthy individuals from the UK.

Last year saw 10,800 high net worth individuals leave the UK, with this number projected to rise to 16,500 in 2025, according to a report from Henley & Partners published prior to the wealth tax rumours.

---