The petition of residents of the United Kingdom,
Declares that a 2% Wealth Tax on assets over £10 million, a measure to equalise Capital Gains Tax with Income Tax rates, and measures to end state subsidies to fossil fuel giants and to close loopholes in the oil and gas windfall tax should be brought; and further notes that these measures would generate an additional £45 billion per year, providing vast resources to rebuild our public services, boost people’s incomes and invest in a higher-wage economy.
The petitioners therefore request that the House of Commons urges the Government to take into account the requests of the petitions and consider the resource benefits of Wealth Taxes when allocating funds in the budget.
And the petitioners remain, etc.—[Presented by Richard Burgon, Official Report, 28 October 2024; Vol. 755, c. 643.]
[P003016]
Observations from the Exchequer Secretary to the Treasury (James Murray):
The Government thank the hon. Member for Leeds East (Richard Burgon) for submitting the petition on behalf of the residents of the United Kingdom regarding the consideration of wealth taxes and oil and gas taxation when allocating funds in the Budget.
The Budget took difficult decisions on tax, spending and welfare to repair the public finances and fix the NHS. By fixing the foundations, we have delivered economic stability, enabling us to increase investment in public services and the economy, and unlocking the long-term growth we need to rebuild Britain.
The Budget announced tax changes worth £41.5 billion in 2029-30. The Government have committed to not increase taxes on working people, and have ensured that the UK is one of the best places to grow a business by capping corporation tax at 25% and announcing reforms to support small businesses and our high street.
The petition specifically raises a question on wealth taxes. The tax changes announced at Budget were underpinned by fairness and included changes to the taxation of wealth by reforming capital gains tax, inheritance tax and stamp duty land tax.
To help repair the public finances, the Government are raising revenue by increasing the main capital gains tax rates to 18% and 24%, while ensuring that the UK tax system remains internationally competitive. The new CGT rates are revenue maximising in the current design of the tax system, and people earning income from selling financial assets will now contribute a greater share of tax on that income. The CGT changes will raise £8.9 billion over the forecast period, revenue which will help the Government to restore economic stability and improve Britain’s public services.
The Government are also raising an additional £2 billion in 2029-30 from inheritance tax, including through restrictions on reliefs used by wealthy individuals. Measures include making the inheritance tax system fairer by applying inheritance tax to unspent pensions pots, which removes the opportunity for individuals to use pensions as a vehicle for inheritance tax planning, and restricting the generosity of agricultural property relief and business property relief.
The Budget announced changes to the stamp duty land tax higher rates for additional dwellings surcharge, increasing this by 2 percentage points from 3% to 5% from 31 October 2024. Increasing HRAD ensures that those looking to move home, or purchase their first property, have a greater advantage over second home buyers, landlords and businesses purchasing residential property. This is intended to support the housing market.
Increasing HRAD will raise £310 million a year by 2029-30, which will be used to support the Government’s priorities. The Office for Budget Responsibility certified costing estimates that increasing HRAD by 2 percentage points is expected to result in 130,000 additional transactions over the next five years by first-time buyers and other people buying a primary residence.
On the energy profits levy, the Government confirmed at Budget that the rate of the levy will increase by 3 percentage points to 38%, taking the headline rate of tax on the oil and gas sector to 78%. The EPL’s sunset date has also been extended by one year to March 2030, and the levy’s 29% investment allowance will be removed. These changes will ensure that oil and gas companies contribute more to our clean energy transition.
Changes to the EPL will raise an additional £2.3 billion, supporting the transition to clean energy, enhancing energy security and providing sustainable jobs for the future.