The majority of Britons think high-earners already pay their fair share of tax, according to a revealing report.
In a blow to Labour’s tax-the-rich agenda, almost 70 per cent of the public believe that the top 1 per cent of earners already pay an appropriate level of tax.
And about two-thirds of those surveyed recognised that taxes on working people would rise if wealthy people were forced to emigrate after being hit in the wallet, research from think-tank the Adam Smith Institute suggests.
According to the TaxPayers’ Alliance, the top 1 per cent earn 13.3 per cent of total income in the United Kingdom but pay 28.2 per cent of all tax.
At the same time, wealthier households are seeing prices rise higher than poorer ones for the first time since March last year, according to data from the Office for National Statistics.
And the number of millionaires in Britain fell to 442,000 last year under Labour’s fiscal regime – representing a 7 per cent drop year on year.
Prime Minister Andy Burnham has refused to rule out further tax rises on the wealthiest.
He has also come under pressure to increase capital gains tax, which is levied on the sale of second homes, shares and other assets.
In a blow to Andy Burnham’s tax-the-rich agenda, almost 70 per cent of Britons think high-earners already pay their fair share in tax
This is despite a close ally of Mr Burnham, economist Lord O’Neill of Gatley, warning last week that if the Government raised taxes in the Budget on October 28 it would demonstrate ministers were not ‘thinking about growth as sincerely as they claim they are’.
Commenting on the data, Sir Mel Stride – who was removed as Shadow Chancellor in Kemi Badenoch’s reshuffle – said that Britain’s patience is ‘wearing thin with Labour’s tax rises’.
He added: ‘The British people know, far better than this Government, that prosperity is driven by people who want to build a better life, for them and their children.
‘But that won’t happen if we hunt down the aspirational and the wealth creators with ever more tax hikes, when they already bear the majority of the burden.’
Mr Burnham has said previously he will look ‘in detail’ at a capital gains tax but has made no firm commitments.
The ONS measures household assets only every two years, so there are no reliable figures for the exact number of millionaires living in the UK who would be hit by a wealth tax.
Shimeon Lee, policy analyst at the TaxPayers’ Alliance, said: ‘Britain’s highest earners already shoulder a huge tax burden, yet Labour seems determined to squeeze them further.
‘Driving wealthy taxpayers and investors overseas is economic self-harm, leaving workers to pick up the tab. Ministers should stop punishing success and get spending under control.’
Lord O’Neill turned down a role in Andy Burnham’s government despite being sought after for his economic credibility
Lord O’Neill said last week it would be ‘stupid’ for the PM to introduce a capital gains tax on the wealthy.
The economist said it would lead to entrepreneurs fleeing the country and slow economic growth.
The life peer told The Times: ‘I think there is some evidence that if you push it up too much you end up losing money. Because it’s such a deterrent to ongoing activities of business owners that they just don’t sell anything. So the revenues go down.’
This comes after former chancellor Rachel Reeves demanded those with the ‘broadest shoulders’ pay their ‘fair share’, and introduced tax-raising measures in last autumn’s Budget, leaving higher earners worse off.
Mr Burnham has pledged to create ‘breathing space’ for households struggling with the rising cost of living.
But higher earners are now being hit hardest by rising costs – with annual inflation increasing by 2.7 per cent for low-income households in the year to June 2026 and by 2.8 per cent for high-income households.
