‘Political cowardice’: Jeremy Corbyn hits out at Labour position on migrant barges

Published

2 years ago

August 7, 2023

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Jeremy Corbyn has accused Sir Keir Starmer of “political cowardice” after the party said it would continue to temporarily house asylum seekers on barges if it wins the next election.

The former Labour leader described the use of vessels as “morally indefensible”.

It comes as the first asylum seekers arrived on the controversial Bibby Stockholm vessel in Dorset this morning, with more arrivals expected throughout the day.

The barge is one of a number of alternative sites the Home Office is using to end reliance on expensive hotels for asylum seekers, which the government says is costing the taxpayer £6m a day.

On Sunday, Shadow Immigration Minister Stephen Kinnock admitted Labour would have “no choice” but to continue to use the alternative sites owing to the “mess” it would inherit from the Conservatives – but said the party would try to move asylum seekers out of hotels, barges and military camps as “quickly as possible”.

International Trade Secretary Nick Thomas-Symonds reiterated Labour’s position this morning, telling Sky News: “We have to address the situation that we inherit, but our policy is to drive the backlog down so we don’t have to use the barges, we don’t have to use the bases, we don’t have to use the hotels.

“It’s not a question of lowering expectations – it’s a question of being open and upfront with the British public about the chaos that we are going to inherit, but also the direction that we then want to go in, which is best for those people trapped in the system but also best value for the taxpayer too.”

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But Mr Corbyn told Sky News: “Forcing human beings who have escaped war and persecution to live on unsafe and overcrowded prison ships is morally indefensible.

“So too is the failure to offer a more humane alternative.

“These are human beings who are legally and legitimately exercising their right to asylum. We should be defending, not denigrating, that right.

“Political cowardice has consequences – and vulnerable people will pay the highest price.”

He added: “That’s why I’m proud to stand alongside people in my constituency campaigning for an immigration system based on dignity and care.”

So far no backbench Labour MPs have spoken out publicly in line with Mr Corbyn, who had the party whip removed in 2020.

There has been considerable local opposition to the Bibby Stockholm due to concerns about the asylum seekers’ welfare and the impact on local services.

Charities have also raised concerns about whether such sites are suitable for those seeking asylum.

Natasha Tsangarides, associate director of advocacy at Freedom from Torture, said: “Cruel accommodation schemes like barges and tents are wholly inappropriate for people who have fled torture and war.”

Sky News has approached the Labour Party for comment on Mr Corbyn’s remarks.

Mr Corbyn spoke as questions remain over his political future and whether he intends to stay on as the MP for Islington North, a constituency he has represented since 1983.

The former leader was suspended from the parliamentary party in October 2020 over his reaction to a damning report by the Equality and Human Rights Commission into how antisemitism complaints were handled under his leadership.

Should Mr Corbyn wish to remain as the MP for Islington North he would have to run for another party or as an independent. While he has dropped suggestions that he may do the latter, he has not been explicit about his intentions.

Immediately after the publication of the antisemitism report, Mr Corbyn claimed “the scale of the problem” in Labour was “dramatically overstated for political reasons by our opponents”.

On becoming party leader, Sir Keir promised to “tear out antisemitism” from Labour.

In March he barred Mr Corbyn from standing for Labour at the next election after proposing a successful motion to the party’s ruling body, the National Executive Committee, that it should not endorse his predecessor to fight for his Islington North seat.

Politics

What is a wealth tax, how would it work in the UK and where else has one?

Published

2 hours ago

July 9, 2025

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What is a wealth tax, how would it work in the UK and where else has one?

The idea of a wealth tax has raised its head – yet again – as the government attempts to balance its books.

Downing Street refused to rule out a wealth tax after former Labour leader Lord Kinnock told Sky News he thinks the government should introduce one.

Sir Keir Starmer’s spokesman said: “The prime minister has repeatedly said those with the broadest shoulders should carry the largest burden.”

While there has never been a wealth tax in the UK, the notion was raised under Rishi Sunak after the COVID years – and rejected – and both Harold Wilson’s and James Callaghan’s Labour governments in the 1970s seriously considered implementing one.

Sky News looks at what a wealth tax is, how it could work in the UK, and which countries already have one.

What is a wealth tax?

A wealth tax is aimed at reducing economic inequality to redistribute wealth and to raise revenue.

It is a direct levy on all, or most of, an individual’s, household’s or business’s total net wealth, rather than their income.

The tax typically includes the total market value of assets, including savings, investments, property and other forms of wealth – minus a person’s debts.

Unlike capital gains tax, which is paid when an asset is sold at a profit, a wealth tax is normally an annual charge based on the value of assets owned, even if they are not sold.

A one-off wealth tax, often used after major crises, could also be an option to raise a substantial amount of revenue in one go.

How could it work in the UK?

Advocates of a UK wealth tax, including Lord Kinnock, have proposed an annual 2% tax on wealth above £10m.

Wealth tax campaign group Tax Justice UK has calculated this would affect about 20,000 people – fewer than 0.04% of the population – and raise £24bn a year.

Because of how few people would pay it, Tax Justice says that would make it easy for HMRC to collect the tax.

The group proposes people self-declare asset values, backed up by a compliance team at HMRC who could have a register of assets.

Which countries have or have had a wealth tax?

In 1990, 12 OECD (Organisation for Economic Co-operation and Development) countries had a net wealth tax, but just four have one now: Colombia, Norway, Spain and Switzerland.

France and Italy levy wealth taxes on selected assets.

Colombia

Since 2023, residents in the South American country are subject to tax on their worldwide wealth, but can exclude the value of their household up to 509m pesos (£92,500).

The tax is progressive, ranging from a 0.5% rate to 1.5% for the most wealthy until next year, then 1% for the wealthiest from 2027.

Norway

There is a 0.525% municipal wealth tax for individuals with net wealth exceeding 1.7m kroner (about £125,000) or 3.52m kroner (£256,000) for spouses.

Norway also has a state wealth tax of 0.475% based on assets exceeding a net capital tax basis of 1.7m kroner (£125,000) or 3.52m kroner (£256,000) for spouses, and 0.575% for net wealth in excess of 20.7m kroner (£1.5m).

The maximum combined wealth tax rate is 1.1%.

The Norwegian Labour coalition government also increased dividend tax to 20% in 2023, and with the wealth tax, it prompted about 80 affluent business owners, with an estimated net worth of £40bn, to leave Norway.

Spain

Residents in Spain have to pay a progressive wealth tax on worldwide assets, with a €700,000 (£600,000) tax free allowance per person in most areas and homes up to €300,000 (£250,000) tax exempt.

The progressive rate goes from 0.2% for taxable income for assets of €167,129 (£144,000) up to 3.5% for taxable income of €10.6m (£9.146m) and above.

It has been reported that more than 12,000 multimillionaires have left Spain since the government introduced the higher levy at the end of 2022.

Switzerland

All of the country’s cantons (districts) have a net wealth tax based on a person’s taxable net worth – different to total net worth.

It takes into account the balance of an individual’s worldwide gross assets, including bank account balances, bonds, shares, life insurances, cars, boats, properties, paintings, jewellery – minus debts.

Switzerland also works on a progressive rate, ranging from 0.3% to 0.5%, with a relatively low starting point at which people are taxed on their wealth, such as 50,000 CHF (£46,200) in several cantons.

Politics

Jingye and Whitehall officials hold talks over British Steel future

Published

5 hours ago

July 9, 2025

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Jingye and Whitehall officials hold talks over British Steel future

The Chinese owner of British Steel has held fresh talks with government officials in a bid to break the impasse over ministers’ determination not to compensate it for seizing control of the company.

Sky News has learnt that executives from Jingye Group met senior civil servants from the Department for Business and Trade (DBT) late last week to discuss ways to resolve the standoff.

Whitehall sources said the talks had been cordial, but that no meaningful progress had been made towards a resolution.

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Jingye wants the government to agree to pay it hundreds of millions of pounds for taking control of British Steel in April – a move triggered by the Chinese group’s preparations for the permanent closure of its blast furnaces in Scunthorpe.

Such a move would have cost thousands of jobs and ended Britain’s centuries-old ability to produce virgin steel.

Jingye had been in talks for months to seek £1bn in state aid to facilitate the Scunthorpe plant’s transition to greener steelmaking, but was offered just half that sum by ministers.

British Steel has not yet been formally nationalised, although that remains a probable outcome.

Jonathan Reynolds, the business secretary, has previously dismissed the idea of compensating Jingye, saying British Steel’s equity was essentially worthless.

Last month, he met his Chinese counterpart, where the issue of British Steel was discussed between the two governments in person for the first time.

Jingye has hired the leading City law firm Linklaters to explore the recovery of hundreds of millions of pounds it invested in the Scunthorpe-based company before the government seized control of it.

News of last week’s meeting comes as British steelmakers face an anxious wait to learn whether their exports to the US face swingeing tariffs as part of US President Donald Trump’s trade war.

Sky News’s economics and data editor, Ed Conway, revealed this week that the UK would miss a White House-imposed deadline to agree a trade deal on steel and aluminium this week.

Jingye declined to comment, while a spokesman for the Department for Business and Trade said: “We acted quickly to ensure the continued operations of the blast furnaces but recognise that securing British Steel’s long-term future requires private sector investment.

“We have not nationalised British Steel and are working closely with Jingye on options for the future, and we will continue work on determining the best long-term sustainable future for the site.”