Could we be about to get wealth taxes in the UK?

0:00 – 5:00

The Political Opening: Why Now Matters

Picture this: the UK Prime Minister is so unpopular he's about to be replaced, borrowing costs have hit the ceiling, living standards are falling, and suddenly the politicians who've been ignoring you for years are calling to ask how wealth taxes work. That's where Gary Stevenson finds himself after years of lobbying. Keir Starmer's Labour government, elected just two years ago in a landslide, has become historically unpopular. Local elections crushed them three weeks ago, triggering a succession battle. Wes Streeting, the Health Secretary, resigned with a scathing letter. Andy Burnham, Manchester's popular mayor, made his move by getting an MP to step down in Makerfield so he could run for Parliament. If Burnham wins that by-election, betting markets give him a 63% chance of becoming Prime Minister within months. If he loses, Starmer might limp through another year before someone like Angela Rayner, Ed Miliband, or Streeting takes over. What makes this moment unprecedented is timing. The Iran war's economic impacts are just beginning, food and energy prices are climbing, and the new Prime Minister will inherit collapsing living standards with no easy fixes. Rishi Sunak came in with a reputation for economic competence and collapsed in popularity. Starmer won a landslide and became the most unpopular PM in modern history. Both failed because they wouldn't address inequality. The incoming leader will need a story about why living standards are falling and how to fix it. With UK borrowing costs at record highs, there's no money to spend quickly. Wealth taxes have suddenly become the only politically viable narrative that could work.