Labour tax plans would cost Britain £350m-a-year due to ‘exodus of the rich’

According to an internal Treasury study, Britain would have to spend £350 million per year on Labour’s tax raids because the wealthy would leave the country.

Sir Keir Starmer’s plan to raise taxes on investment funds and non-doms will cause investors to flee the country, resulting in a drop in overall revenue. 

Shadow Chancellor of the Exchequer Rachel Reeves put out her “business model for Britain” at a Washington think group on Wednesday (May 24), criticising globalisation and “trickle down” economics.

Her address and an extra 11,000-word brochure both mentioned personal taxes. However, a 2018 report authored by Ms Reeves, who was head of the business select committee at the time, reveals that she formerly believed there should have been a slew of additional taxes, such as charges on property, land, and gifts.

The shadow chancellor also advocated for a capital gains tax increase, which she now claims she has “no plans” to implement.

On Wednesday, Reeves called for a new “green special relationship” between the UK and the US, promising to replicate Joe Biden’s Inflation Reduction Act by investing in the UK’s renewable energy sector.

Labour has promised a series of levies on investment funds, private schools, landlords and oil and gas corporations if it wins the next general election, as well as billions more in public borrowing to meet the cost of green investment.

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