Will the government introduce a wealth tax – and how would it work?

High borrowing costs, weak economic growth and failed spending cuts mean tax hikes look likely this autumn. Will Labour introduce a wealth tax?

Photographer: Andy Rain/EPA/Bloomberg via Getty Images
(Image credit: Photographer: Andy Rain/EPA/Bloomberg via Getty Images)

The government is in a tricky spot heading into the autumn. Last year’s Budget was supposed to be a once-in-a-parliament reset, with £40 billion of tax hikes announced in an attempt to balance the state’s books.

Since then, weak economic growth, high borrowing costs and failed spending cuts have eroded the chancellor’s so-called ‘fiscal headroom’. Further tax hikes look likely as a result.

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Katie Williams
Staff Writer

Katie has a background in investment writing and is interested in everything to do with personal finance, politics, and investing. She enjoys translating complex topics into easy-to-understand stories to help people make the most of their money.

Katie believes investing shouldn’t be complicated, and that demystifying it can help normal people improve their lives.

Before joining the MoneyWeek team, Katie worked as an investment writer at Invesco, a global asset management firm. She joined the company as a graduate in 2019. While there, she wrote about the global economy, bond markets, alternative investments and UK equities.

Katie loves writing and studied English at the University of Cambridge. Outside of work, she enjoys going to the theatre, reading novels, travelling and trying new restaurants with friends.

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