Former Health Secretary Wes Streeting has put forward a proposal to introduce a wealth tax, suggesting it could generate an estimated £12 billion per year. This policy initiative is part of his pitch for the Labour leadership, focusing on reforms to capital gains tax by aligning it with income tax rates.

Streeting articulated his vision for a "wealth tax that works," arguing that the current system unfairly penalizes work. He also suggested that such a reform could encourage investment by offering reduced capital gains tax rates specifically for genuine entrepreneurs.

His proposal comes amidst a period of significant speculation about a potential Labour leadership challenge. Streeting recently resigned from his government position, citing a loss of confidence in Sir Keir Starmer's leadership. He informed the Prime Minister directly of his intention to challenge for the leadership.

Streeting believes the current government lacks definition, direction, and vision, which he feels leads to a disconnect with voters. He stated that when people are unsure of who a party or leader is and what they stand for, they do not vote for them.

To formally enter a Labour leadership contest, Streeting would require the support of 81 Labour MPs. He indicated that he decided against immediately triggering a contest a few days before his resignation, partly due to learning that Greater Manchester Mayor Andy Burnham, a potential rival, had secured a parliamentary seat.

Streeting explained that plunging directly into a leadership contest might have been perceived as an attempt to gain an advantage over Burnham's potential return to national politics. Josh Simons' resignation as MP for Makerfield opened the door for Burnham to stand in the upcoming by-election.

In the interim, Streeting has been outlining his policy agenda. His proposed wealth tax aims to address perceived inequities in the tax system and stimulate economic activity through targeted incentives for entrepreneurs.

This policy stance positions Streeting as a contender with a distinct economic platform, seeking to differentiate himself as he prepares for a potential leadership race within the Labour Party.