Reports indicate that Prime Minister Andy Burnham's government is seriously considering wealth and asset taxes to fund its plans, ahead of the autumn Budget. This comes as internal conflict reportedly emerges over the tough choices the government faces.
It is suggested that former Goldman Sachs chief economist Jim O’Neill may decline to join Burnham’s economic team due to concerns about the effectiveness of wealth taxes. The 'Smorgasbord' of taxes on assets and wealth is described as a likely preferred method of payment for Burnham's plans, potentially meaning that High Value Council Tax bands introduced in November's Budget could be introductory rates.
Since entering 10 Downing Street on 20 July, Burnham has announced a £2 bus fare cap in England, a cut in business rates for pubs and clubs, the abolition of VAT on electricity bills, and an overhaul of the social care system.
The mainstream UK housing market remains subdued, with new buyer and exchange indicators in negative territory, according to RICS figures released last week. While prime London markets are recovering from a low base, the wider UK market has yet to experience a similar uplift.
The Budget on 28 October is not the only area of growing contention, with the early release scheme for prisoners and the housing of asylum seekers also cited as rising political stakes for Burnham.