Wes Streeting pledges 'wealth tax that works'

Wes Streeting backed a “wealth tax that works” by proposing equalising capital gains tax with income tax. He estimated the reform could raise £12bn a year. He said the current system is unfair because it penalises work, while lower capital gains tax rates can encourage investment by supporting genuine entrepreneurs. Streeting set out the policy after resigning as health secretary and said he would seek to enter any Labour leadership contest. He told the prime minister he would challenge for Labour leadership, citing lack of definition, direction, and vision. A leadership contest would require support from 81 Labour MPs, and Streeting said he had decided against triggering one after learning Andy Burnham had secured a seat for a by-election.

"Former Health Secretary Wes Streeting has backed the introduction of a "wealth tax that works", as part of his pitch for the Labour leadership. Streeting is proposing equalising capital gains tax with income tax, in a reform he estimates could raise 12bn a year. He said the change would address an unfair system that was "penalising work", while encouraging investment by offering lower rates of capital gains tax to "genuine" entrepreneurs."

"Streeting set out the policy on the BBC's Political Thinking podcast, in his first in-depth broadcast interview following his resignation as health secretary last week. He quit the cabinet after dozens of Labour MPs urged Prime Minister Sir Keir Starmer to stand down, fuelling intense speculation the former health secretary was planning a bid to replace him as party leader. Streeting did not mount an immediate challenge following his resignation, but has since said he will seek to enter any potential Labour leadership contest."

"When he met Sir Keir in Downing Street the day before he resigned from the cabinet, he told the prime minister directly he would be challenging him for the Labour leadership, Streeting told the BBC. "As I said to the prime minister in my letter and privately, this is a government that lacks definition and also direction and vision," Streeting said. "When people don't know who you are, and what you stand for, they don't vote for you.""

"Streeting would need the support of 81 Labour MPs to trigger a leadership contest under the party's rules. He said he had decided against that a few days before he resigned, after he had learned Greater Manchester Mayor and potential Labour leadership rival Andy Burnham had "found a seat". Josh Simons announced he was standing down as the MP for Makerfield on Thursday last week, paving the way for Burnham to stand as Labour's candidate in the forthcoming by-election."

Read at www.bbc.com