The proposed two per cent annual levy would target people with assets worth more than £10million

Andy Burnham's new strategy chief previously backed an annual wealth tax designed to raise £24billion for public services and benefits.

The proposed two per cent levy would apply to around 2,000 people with assets worth more than £10million.

Matthew McGregor, who was appointed director of political strategy at Number 10 late on Friday, supported the policy before Sir Keir Starmer's first Budget in October 2024.

In the foreword to a policy paper called "Winning the Argument", Mr McGregor argued that the tax could fund the NHS and support struggling households.

He wrote: "A wealth tax on the ultra-rich is a highly popular way that £24billion in public funds could be raised: funds that could rebuild services like our beloved NHS while also supporting struggling families."

His appointment has increased speculation about the direction of tax policy under Mr Burnham, who will take office as prime minister tomorrow.

Speaking to Gary Lineker, Mr Burnham refused to rule out introducing a wealth tax and suggested his government could eventually ask taxpayers to contribute more.

He said: "I'm not going rule things out right now. I do believe we need a greater sense of fairness."

The former Greater Manchester mayor acknowledged that difficult financial decisions lay ahead but insisted he would not avoid them.

Mr Burnham added: "We are going to have to work quite hard to make sure, you know, we can pay our way.

"And at some point that might be having to ask for a little more. But, you know, those decisions are not for now. They're for another day."

Mr McGregor has previously argued that opposing every tax increase is a "dead end for the country".

He has said that any new taxes should "obviously fall very disproportionately on the ultra-rich and the big banks, gambling firms and fossil fuel firms".

The former chief executive of campaign group 38 Degrees has also publicly supported a four-day working week.

Mr McGregor has a history of opposing welfare cuts and campaigned against Sir Keir's benefit reforms while leading 38 Degrees, before celebrating when the measures were watered down.

In a LinkedIn post, he wrote: "38 Degrees supporters are angry about these changes. They wanted progress from a Labour Government and this ain't it."

The campaign group also suggested describing a wealth tax as an "ultra-rich tax" or "ten million tax" to reduce the risk of alienating middle-class voters.

Opposition politicians have used Mr Burnham's comments to warn that tax increases could be coming.

Robert Jenrick, Reform UK's Treasury spokesman, accused the incoming prime minister of effectively admitting that "people will have to pay more in tax".

Mr Jenrick wrote on X: "He should rule out the ten taxes - £3,450 for every family - he's previously supported but has no mandate for."

Conservative leader Kemi Badenoch also criticised Mr Burnham for discussing possible tax increases before entering Downing Street.

Mrs Badenoch said: "We are heading for another summer of chaos with Labour obsessing about who they can tax to pay for more benefits."

Mr Burnham has promised to honour Labour's 2024 manifesto commitments not to increase VAT, income tax or National Insurance.

These pledges leave his government with fewer options for raising additional revenue, increasing speculation that a wealth tax could be considered.