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George Galloway’s hopes of recruiting Jeremy Corbyn to his party have been dashed after sources close to the former Labour leader dismissed the idea he would join forces with the newly-elected MP for Rochdale.

Upon entering parliament last week following his controversial victory in the Rochdale by-election, Mr Galloway appealed to Mr Corbyn to “launch and lead” a new alliance of socialists and questioned why he had “procrastinated for so long” about his political future.

But sources close to Mr Corbyn – who remains suspended from the parliamentary Labour Party – have told Sky News Mr Galloway and Mr Corbyn working together was “never going to happen”.

A former aide told Sky News: “Galloway wants Jeremy to be the leader of some new great movement, but I don’t think Jeremy would do that. He doesn’t need Galloway’s baggage.”

They added: “George and Jeremy may have spoken at the same rallies during the Iraq war, but they have not ever been close comrades. George Galloway is a lone wolf – it’s how he operates.”

Another source branded the idea Mr Corbyn could join Mr Galloway’s Workers Party as a “complete non-starter”.

“They may agree over Gaza but they have totally different politics. It wouldn’t be in Jeremy’s interests.”

More on Jeremy Corbyn

A spokesperson for Mr Corbyn declined to comment. Mr Galloway has been approached for comment.

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‘Keir Starmer, you’ll pay a high price’

Mr Galloway, a former Labour MP who was expelled from the party in 2003, won the Rochdale by-election last week on a pro-Gaza platform that earned him a majority of 5,697 votes.

By contrast, Labour – which had previously held the seat under the late Sir Tony Lloyd – came fourth with just 2,402 votes after the party was forced to abandon support for its candidate following an antisemitism row.

Mr Galloway has been strongly critical of Sir Keir Starmer’s position on the conflict, accusing him in his victory speech of “enabling, encouraging and covering for the catastrophe presently going on in occupied Palestine in the Gaza strip”.

Read more:
Sir Keir Starmer should be very, very worried after Galloway win
Who is George Galloway, the new MP for Rochdale?

He claimed his election was going to “spark a movement, a landslide, a shifting of the tectonic plates in scores of parliamentary constituencies”.

Shortly before he was sworn in as an MP in the Commons, Mr Galloway urged Mr Corbyn to make a “final total break with Labour” in an interview with the left-leaning YouTube channel Not the Andrew Marr Show.

He admitted he had not spoken with Mr Corbyn in “many years” and said he did not know why “he has procrastinated so long in making a final total break with Labour and leading something himself.”

“If he was here now, I would say to him, ‘You saw what happened [in Rochdale]. Set up, announce an alliance of the remaining socialists in the country. You lead it, I’ll support it, you’ll be the leader, and let’s go. Time is running out.'”

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‘If you slap me I will slap you back’

He added: “He must avoid being a wasting asset. He is a very considerable asset and everyone loves him. But he should be careful that he doesn’t waste the remaining opportunity that he has.

“If he won’t, we will run ourselves – we’ll support independence where we don’t run ourselves, and we’ll do that, but we will be weaker because of the absence of Jeremy Corbyn at the head of it.”

Mr Corbyn sits as an independent MP in the Commons after he was suspended from the parliamentary Labour Party over his reaction to a damning report into how antisemitism complaints were handled under his leadership.

Sir Keir has been adamant there is no route back for Mr Corbyn into the parliamentary party and that he will not be able to stand for Labour at the next election – increasing the likelihood he will stand as an independent in his constituency of Islington North, a seat he has held since 1983.

One Labour MP said they believed Mr Galloway had “ulterior motives” in asking Mr Corbyn to join his party – something they said the latter would be “stupid to do”.

“He’s set Corbyn a challenge he know he won’t be able to step up to,” they explained.

“He’s trying to make Jeremy an offer he can’t refuse and if he doesn’t take up that offer, I think Galloway will make out that Corbyn is the problem. Galloway wants to be the big boy of the left, he wants Jeremy’s 2.5m followers on social media.

“He wants to be the kingmaker of the left – but Galloway is for Galloway and nothing else.”

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US CLARITY bill could allow Tesla and Meta to evade SEC rules — Senator Warren

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US CLARITY bill could allow Tesla and Meta to evade SEC rules — Senator Warren

US CLARITY bill could allow Tesla and Meta to evade SEC rules — Senator Warren

The legislation to establish crypto market structure is one of three bills the US House of Representatives is expected to consider starting next week.

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

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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.

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Lord Kinnock calls for ‘wealth tax’

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.

Chancellor Rachel Reeves and Prime Minister Sir Keir Starmer at the launch of the 10-year health plan in east London. Pic: PA
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Will Chancellor Rachel Reeves and Prime Minister Sir Keir Starmer impose a wealth tax? Pic: PA

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.

Read more:
No wealth tax under a Labour govt, Rachel Reeves said in 2023

UN criticises Starmer’s welfare reforms and warns measures will ‘increase poverty rates’

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Wealth tax would be a ‘mistake’

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.

Bogota in Colombia, which has a wealth tax
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Bogota in Colombia, which has a wealth tax

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).

Norway has both a municipal and state wealth tax. Pic: Reuters
Image:
Norway has both a municipal and state wealth tax. Pic: Reuters

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.

Madrid in Spain. More than 12,000 multimillionaires have left the country since a wealth tax was increased in 2022. Pic: Reuters
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Madrid in Spain. More than 12,000 multimillionaires have left the country since a wealth tax was increased in 2022. Pic: Reuters

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.

Zurich is Switzerland's wealthiest city, and has its own wealth tax, as do other Swiss cantons. Pic: Reuters
Image:
Zurich is Switzerland’s wealthiest city, and has its own wealth tax, as do other Swiss cantons. Pic: Reuters

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.

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Jingye and Whitehall officials hold talks over British Steel future

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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.

Money blog: €1 home goes on sale – but there are T&Cs

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.

More on British Steel

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.

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Inside the UK’s last blast furnaces

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.

Read more from Sky News:
Is Britain going bankrupt?
Public finances in ‘relatively vulnerable position’, OBR warns

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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.”

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