The Wealth Tax Commission said that rather than increasing income tax or VAT the government should tax households above a £1m threshold an extra 1%. It said this could raise £260bn over five years and restore public finances battered by the Coronavirus pandemic.

In November the Office for Budget Responsibility (OBR) predicted the economy will shrink 11.3% by the end of 2020. Chancellor Rishi Sunak has promised to “balance the books” following the spending during the Coronavirus pandemics.

Neil Jones, tax and estate planning specialist, Canada Life said the government should be focusing on growing the economy in order to improve public finances rather than looking at one-off taxes.

He said: “By any measure the UK is already one of the highest tax paying nations in the G7. As welcome as a debate on the pros and cons of introducing a one-off wealth tax may be, many countries across the world have tried and failed to implement similar moves.

“It’s thought of as regressive rather than progressive by the electorate, and ultimately as any change would be a question for the political elite, is likely to be as popular as turkeys voting for Christmas.

“Rather than focus on tax raising measures, we should be looking at growing our way out of the hangover from the pandemic, through job creation and security, not a one-off tax on wealth.”

The Wealth Tax Commission is a body made up of academics, policymakers and tax practitioners.