Ministers urge police to make ‘robust’ use of powers over safety fears

Published

1 year ago

February 19, 2024

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Ministers have urged police forces to use “robust” measures to tackle protesters who “intimidate and harass” MPs over their stance on the Israel-Gaza conflict.

In a letter to chief constables, seen by Sky News, security minister Tom Tugendhat and policing minister Chris Philp said the demonstration outside the home of Conservative MP Tobias Ellwood was an example of “unacceptable” actions that risk having a “chilling effect on democracy”.

Politics Live: Starmer calls for lasting ceasefire in Gaza

More than 60 people, some holding Palestinian flags and leading chants, gathered at the Bournemouth East MP’s home last Monday.

The letter from the two ministers said: “The intimidation of democratically elected representatives is unacceptable.

“It’s important that our elected representatives are able to feel safe in their homes, free from fear and harassment.

“I’m strongly concerned about the chilling effect that undermining this could have on our political discourse, as well as on the willingness of prospective candidates to step forward and provide our communities with the representation they deserve.”

The letter acknowledged the “operational independence” of the police before listing the powers they can use to deal with protesters “robustly”.

It said that given this year will likely see a general election it is “all the more important that candidates, both locally and nationally, are free to make their arguments to our communities without fear”.

It added: “You have my full support in making robust use of all your powers to ensure that the security of our elected representatives is protected, and our democratic values upheld.”

The unusual intervention comes amid increasing concern about MPs’ safety.

This month Conservative MP Mike Freer announced he would quit parliament after a series of death threats and an arson attack on his office.

Labour deputy leader Angela Rayner also told Sky News she no longer goes out socially because she is scared of death threats and protest confrontation from those opposed to her party’s stance on the war.

It follows the murders in recent years of MPs Jo Cox and Sir David Amess in their constituencies.

Speaking to The Telegraph, which first reported on the letter, Mr Tugendhat referenced the killing of Ms Cox eight years ago as he accused those who target politicians of “silencing democracy”.

He told the newspaper: “While I champion the right to protest and of course think it’s important that people have the right to express their views, everyone must have that right – not just loudmouth thugs who want to silence everybody else.”

Mr Ellwood separately wrote a piece for The Telegraph in which he warned of a growing trend of public servants facing “intimidation and threats”.

He said MPs “including myself, are now troubled by our ability to attract the next generation of talent”.

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The former defence minister and his family were not at home during the demonstration last week, after being warned by police to stay away.

He has said he doesn’t know why he was targeted given he has not taken a particularly strident pro-Israel view.

Protests have been held across the country in recent months to call for a ceasefire, as the death toll from the Israeli bombardment of Gaza continues to rise.

There have also been warnings of a growing volume of antisemitic incidents in the wake of the Hamas attacks on 7 October, amid heightened tensions over the conflict.

Mr Ellwood said: “Though this was the first pro-Palestinian targeting of an MP’s house, it is far from an isolated incident.

“Fellow MPs agree – we are witnessing a growing trend where public servants increasingly face intimidation and threats.”

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.”