Rachel Reeves faces mounting pressure ahead of her Spring Statement as calls grow for a wealth tax to help fill the UK’s £22billion fiscal gap.
With the Chancellor ruling out income tax rises, Patriotic Millionaires UK, a group of high-net-worth individuals explains an easy way the Treasury can make more than enough to cover the shortfall.
Julia Davies, an impact investor and member of Patriotic Millionaires UK told GB News: “There’s a very simple way the Chancellor can grow the economy – it’s by taxing rich people, like me.”
She argues that the wealthy would “barely notice” such a tax, yet it could “transform our creaking public services without taking a penny from people’s pay packets.”
A two per cent tax on those with over £10million could raise £24bn a year, enough to cover the blackhole.
However, Reeves has consistently dismissed a wealth tax, stating: “We have no plans for a wealth tax. I don’t see the way to prosperity as being through taxation. I want to grow the economy.”
With the Spring Statement approaching, the debate intensifies over whether Labour will take on the ultra-wealthy or rely on spending cuts to balance the books.
The organisation, which brings together millionaires advocating for higher taxes on the super-rich, has been campaigning across the country to garner support.
The proposed wealth tax would only affect 0.04 percent of the British population
Gokhan Goksoy/VR Agency
They argue that such a tax would affect only 20,000 people in Britain.
The group recently took their message to London, using a ‘battle-style’ bus to promote their cause ahead of the Government’s Spring Statement.
Davies dismissed claims that millionaires would leave the UK as “false and purposely misleading.”
“This is what being patriotic is – wanting the best for your country and all the people who live here,” she added.
She emphasised that while most people struggle financially, “the rich are getting richer.”
The proposed wealth tax would only affect 0.04 percent of the British population, yet could deliver significant national investment potential.
She said: “A wealth tax of two per cent on people with over £10 million would raise £24bn a year, more than enough to fill the £22bn black hole in the Government’s finances.”
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The group argued this revenue could be implemented quickly and would help address multiple national priorities
Gokhan Goksoy/VR Agency
The group argued this revenue could be implemented quickly and would help address multiple national priorities.
It could fund defence spending increases, inject money into struggling public services, and help create what they call “a fairer, better Britain.”
Davies contrasted the average UK salary of £37,000 with the country’s 165 billionaires to illustrate wealth disparity.
“When you look at it like that – it’s very clear that we need a wealth tax as soon as possible,” she said.
The campaign has garnered significant support, with seven in 10 UK millionaires backing higher taxes on the super-rich. Three-quarters of the British public agree with this position, according to the group.
Davies explained: “As patriotic millionaires we would be proud to pay more, to give our country the investment needed to create a stronger, fairer Britain.”
Jake Atkinson from Tax Justice UK added: “Tax and spending is a political choice. The Chancellor must side with those waiting for housing or healthcare, rather than the super-rich.”
The Spring Statement’s missing £24bn answer: The ‘simple way’ to fix the economy without more tax hikes
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The wealth tax is just one of 10 reforms proposed by Tax Justice UK and Patriotic Millionaires UK. Together, these reforms could raise £60bn annually.
Davies continued: “Inflation is rising, utility bills are higher than ever, and the aid budget is being slashed to fund defence.”
She insisted that “cuts are not the solution” to the country’s problems.
The campaign follows a global initiative where Patriotic Millionaires UK joined with other organisations to gather over 370 millionaires and billionaires.
Together they signed a letter to world leaders at the World Economic Forum, demanding increased taxation of the super-rich.
