How to tax wealth

The decimal points are less important than the government’s rhetoric, argues Tom Clark

Jul 10, 2025

We hate to gloat, but when it comes to the mounting pressure in Westminster for a wealth tax, Prospect got there first. This week’s debate kicked off after former Labour leader Neil Kinnock urged the government to adopt the policy on Sky News on Sunday. But Kinnock was merely repeating the same policy he proposed to Alan Rusbridger in our exclusive interview in June—a “2 per cent tax on assets above £10m”. We’re glad the rest of the press pack is catching up.

As far back as last year, we held a debate between tax expert Dan Neidle and Labour MP Liam Byrne on whether and how such a tax might work. But in today’s Lightbulb, our contributing editor Tom Clark argues the decimal points are less important than the government’s rhetoric.

“Wealth never lies down and waits to be taxed,” Tom writes. “A politician that wishes to tackle its privileges, and to do so in a way that sticks, must take the fight to wealth, by finding the phrases that can turn those privileges into a source of embarrassment, even shame.” He points to the examples of David Lloyd George and Franklin Roosevelt, who found the winning words. Can Keir Starmer?

Elsewhere, Jo Glanville considers what the Bob Vylan controversy tells us about antisemitism. One must be able to criticise Israel without being automatically branded antisemitic, she writes, but equally critics of the Netanyahu government mustn’t undermine their own arguments by normalising racism.

On Media Confidential, Sophia Smith Galer convinces Alan and Lionel Barber that newsrooms need to be producing vertical videos. Meanwhile, Kate Maltby queues outside London Palladium to catch a glimpse of Rachel Zegler appearing as Eva Perón. Such moments have gone viral, but is the play any good? As always, email your thoughts to ben.clark@prospectmagazine.co.uk.