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The government has declined to rule out a “wealth tax” after former Labour leader Neil Kinnock called for one to help the UK’s dwindling finances.

Lord Kinnock, who was leader from 1983 to 1992, told Sky News’ Sunday Morning With Trevor Phillips that imposing a 2% tax on assets valued above £10 million would bring in up to £11 billion a year.

Politics latest: Reeves’s tax turmoil deepens

On Monday, Sir Keir Starmer’s spokesperson would not say if the government will or will not bring in a specific tax for the wealthiest.

Asked multiple times if the government will do so, he said: “The government is committed to the wealthiest in society paying their share in tax.

“The prime minister has repeatedly said those with the broadest shoulders should carry the largest burden.”

He added the government has closed loopholes for non-doms, placed taxes on private jets and said the 1% wealthiest people in the UK pay one third of taxes.

Chancellor Rachel Reeves earlier this year insisted she would not impose a wealth tax in her autumn budget, something she also said in 2023 ahead of Labour winning the election last year.

Asked if her position has changed, Sir Keir’s spokesman referred back to her previous comments and said: “The government position is what I have said it is.”

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Welfare: ‘Didn’t get process right’ – PM

The previous day, Lord Kinnock told Sky News: “It’s not going to pay the bills, but that kind of levy does two things.

“One is to secure resources, which is very important in revenues.

“But the second thing it does is to say to the country, ‘we are the government of equity’.

“This is a country which is very substantially fed up with the fact that whatever happens in the world, whatever happens in the UK, the same interests come out on top unscathed all the time while everybody else is paying more for getting services.

“Now, I think that a gesture or a substantial gesture in the direction of equity fairness would make a big difference.”

The son of a coal miner, who became a member of the House of Lords in 2005, the Labour peer said asset values have “gone through the roof” in the past 20 years while economies and incomes have stagnated in real terms.

In reference to Chancellor Rachel Reeves refusing to change her fiscal rules, he said the government is giving the appearance it is “bogged down by their own imposed limitations”, which he said is “not actually the accurate picture”.

A wealth tax would help the government get out of that situation and would be backed by the “great majority of the general public”, he added.

His comments came after a bruising week for Prime Minister Sir Keir Starmer, who had to heavily water down a welfare bill meant to save £5.5bn after dozens of Labour MPs threatened to vote against it.

With those savings lost – and a previous U-turn on cutting winter fuel payments also reducing savings – the chancellor’s £9.9bn fiscal headroom has quickly dwindled.

In a hint of what could come, government minister Stephen Morgan told Wilfred Frost on Sky News Breakfast: “I hold dear the Labour values of making sure those that have the broadest shoulders pay, pay more tax.

“I think that’s absolutely right.”

He added that the government has already put a tax on private jets and on the profits of energy companies.

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Roman Storm’s lawyers signal continuance if court allows hacker’s testimony

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Roman Storm’s lawyers signal continuance if court allows hacker’s testimony

Roman Storm’s lawyers signal continuance if court allows hacker’s testimony

The Tornado Cash co-founder is scheduled to go to trial on Monday, but his defense attorneys are still waiting on rulings for motions over witnesses in the case.

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Migrants deal a win for Starmer – and could help with fight against Reform

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Migrants deal a win for Starmer - and could help with fight against Reform

The bromance between Sir Keir Starmer and President Macron is so apparent – embraces all around.

This is some deft diplomacy from Sir Keir, who has been love-bombing his French counterpart ever since he became prime minister – trying to get closer ties, be it on security, on trade, and now of course on small boats.

And he has got a win today – he’s got President Macron to agree a deterrent deal.

Politics latest: Macron stokes undiplomatic Brexit row

You remember the Conservatives were trying the Rwanda plan to deter people from coming by sending them back to Rwanda, a third country, if they came here illegally.

What the prime minister has agreed with President Macron today is a big deal. It’s a one in, one out deal.

What they’re going to do is, if someone arrives here illegally, they will be sent back to France, and in return, the UK will accept a legitimate asylum seeker. It might be someone who has family ties.

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How people smugglers dodge French police

It’s going to start off really small – think of it as a pilot – as they’re going to test it out, see if it works.

It might be just a handful of people being sent back, maybe just under a thousand or so by the end of the year. But they will hopefully, for the prime minister, scale it up and it could become a real deterrent.

Read more from Sky News:
Ex-Tory chairman defects to Reform

Farage hits back at Macron over Brexit row

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Farage reacts to UK-France migrant deal

I’ll leave you with just one more thought: As Prime Minister Starmer and President Macron were doing this deal today, Nigel Farage was in the English Channel documenting illegal migrants making that crossing – 79 people being picked up by Border Force, taken off a dinghy and into Dover.

Polling out this morning by Portland suggests four in 10 voters who are planning on going to Reform would go back to Labour if the prime minister tackles small boats and drives down the crossings.

There is a real political imperative for him to try to start to resolve this problem. It’s going to count at the ballot box – immigration is a top-three issue in this country when it comes to voters.

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US lawmakers to discuss crypto tax policy amid push to pass three bills

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US lawmakers to discuss crypto tax policy amid push to pass three bills

US lawmakers to discuss crypto tax policy amid push to pass three bills

The hearing notice suggested a focus on a tax framework for digital assets, but did not mention specific witnesses or policies previously proposed.

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