Labour Health Minister Calls For Tax On Rich

by Jason Gorringe, Tax-News.com, London

19 August 2008

Writing at the weekend, UK Health Minister, Ivan Lewis caused controversy by suggesting that "morale boosting" tax increases for the country's wealthy may be the way forward.

Writing in the Sunday Times, Mr Lewis warned that as Labour's popularity appears to be waning, it should take steps to protect the "mainstream majority" that make up its key supporters.

"Our duty is to act decisively and make tax and spending decisions that show we understand what it is like to cope with rising food, fuel and utility bills," Mr Lewis wrote, adding that:

"If as a result of the current economic situation the only way to help hard-pressed middle-class families is to ask the higher earners to pay more, then serious consideration should be given to that."

Although the Health Minister did not specify the rate of increase that he thought would allow the government to provide "meaningful" assistance to middle class voters, reports in the UK media in the wake of the article have suggested that he would likely favour the suggestion put forward last month by former Parliamentary Under Secretary of State at the Department for Constitutional Affairs, and current Director of the New Local Government Network, Chris Leslie, which would see an extra ten pence in the pound imposed on earnings of more than GBP250,000.

This would bring in an additional GBP3.5bn per year, according to estimates.

Mr Lewis' unguarded remarks have reportedly caused anger amongst his government colleagues, especially - unsurprisingly - within the Treasury Department.

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