The Prime Minister is warned a tax reportedly under consideration by his team would have ‘wealth creators running for the hills’
Andy Burnham is urged to rule out taxes which could shut off investment (Image: Finnbarr Webster/PA Wire)
Andy Burnham will “destroy investment in this country” if he introduces an “exit tax” on people leaving the country, Shadow Chancellor Sir Mel Stride has warned. He is alarmed by Government’s refusal to rule out such a tax despite claims his team have considered this revenue-raising measure.
Former cabinet minister Sir Mel warned an exit tax would “see wealth creators running for the hills”. Mr Burnham’s arrival in Number 10 has fuelled speculation this could be on the cards to minimise losses to the tax-take if wealthy people quit the UK. Conservatives are concerned this could involve charging capital gain tax on any increase in the value of assets such as shares and property even if these have not been sold.
Sir Mel said: “Labour are always looking for more ways to raise taxes on hardworking people. Andy Burnham needs to urgently rule out more tax rises and reassure families, businesses and investors.
“An exit tax would destroy investment in this country and see wealth creators running for the hills – along with the tax revenues they generate. That would only mean higher taxes for everyone else. Only the Conservatives are on the side of the aspirational majority. We have a plan and the leadership to deliver an economic revolution, cut taxes and get Britain working again.”
When asked to comment, a Treasury spokesperson again refused to rule out such a measure ahead of the Budget, saying: “The Chancellor is fully focused on his priorities, to boost business, help with the cost of living and support people in every postcode.
“As has always been the case, the Chancellor will set out decisions at fiscal events, rather than routinely commenting on rumour, speculation or proposals.”