Budget 2024: Could a wealth tax by Rachel Reeves cost the UK economy billions?

The UK is especially vulnerable to the ill effects of a wealth tax and could suffer a near £100bn hit to its GDP in a decade were one introduced, a paper out today has argued. A two per cent tax applied to those with a net wealth of £10m would incur a 0.4 per cent reduction in the UK’s annual GDP growth rate, the study’s author says, resulting in a £1,107 hit to wages. The report, published by free market think tank the Taxpayers’ Alliance (TPA), runs counter to several recent calls for a two per cent annual levy on the wealth of the super rich ahead of this week’s Budget. Last week, a group of 30 MPs predominantly comprising Labour, Green and Liberal Democrat politicians wrote to Rachel Reeves demanding that a wealth tax replace any plans for spending cuts in her upcoming statement. Get more on the story 👇 https://www.cityam.com/wealth-tax-could-cost-the-uk-100bn-in-10-years/ Get more of City AM 👇 🌐 http://www.cityam.com X(formerly Twitter): http://twitter.com/CityAM Facebook: http://www.facebook.com/cityam Instagram: http://www.instagram.com/city_am LinkedIn: www.linkedin.com/company/cityam Produced by: Larissa Howie, Scarlett Wild, Ali Lyon