'Catastrophic!' Kemi Badenoch exposes Keir Starmer for 'flirting with wealth tax demands'

Prime Minister's Questions

Kemi Badenoch put the PM on the spot on the potential for a wealth tax (Image: PA)

Fears that Labour will try to fill the black hole in the nation’s finances with a new “wealth tax” have soared after Sir Keir Starmer refused to rule out such a tax raid during Prime Minister’s Questions.

Conservative leader Kemi Badenoch accused him of “flirting” with Left-wing demands for a wealth tax on the well-off.

She told MPs it is impossible to “tax your way to growth”.

Mrs Badenoch added: “What is more worrying is now he is flirting with Neil Kinnock’s demand for a wealth tax. Let’s be honest about what that means. This is a tax on all of our constituents’ savings – on their houses, on their pensions. It would be a tax on aspiration. Will the Prime Minister rule this out?”

Sir Keir declined to commit to not introducing the tax.

Mrs Badenoch used her weekly opportunity to put the PM on the spot to attack Labour’s record on tax.

She said: “This is a mess of his own making. He shouldn’t be asking how we would clean it up.

“The fact is, they raised National Insurance through the jobs tax, and that’s why they have to put up council tax.

“The truth is, his catastrophic Budget has created a domino effect which he cannot now control.”

Former Labour leader Lord Neil Kinnock has suggested a wealth tax could “commend” the Government to the general public. He has warned Labour policies have been “obscured” by rows over welfare and winter fuel.

Darren Jones, the Chief Secretary to the Treasury, also declined to rule out the introduction of such a tax this week.

Lord Kinnock, who led the party from 1983 to 1992, made the case for “asset taxes” on Sky News.

He said: “By going for an imposition of 2% on asset values above £10million, say, which is a very big fortune, the Government would be in a position to collect £10billion or £11billion.”

This comes as Labour is braced for a challenge from the Left.

Pollsters YouGov found one in six Britons (18%) say they are likely to consider voting for a new left-wing party led by Jeremy Corbyn.