Super-rich plan to flee if Ed Miliband becomes Chancellor | Politics | News
Britain’s super-rich are planning to feel for their country if Ed Miliband is elected Chancellor under new Prime Minister Andy Burnham. Fears have been raised after the Makerfield MP was said to be planning a multibillion-dollar tax raid targeting the country’s wealth creators.
It is now reported that the country’s leading businessmen have engaged international tax consultants to find new ways to circumvent the possible expansion of Capital Gains Tax (CGT). Mr Burnham is expected to launch a review of the CGT before his first budget this year.
The former Mayor of Greater Manchester previously said the country was “overloaded” [and] Mr Burnham vowed to stick to Labour’s manifesto pledge – which he has made more than 52 times – not to increase income tax, VAT or National Insurance. This means it could consider equalizing income tax and CGT rates or even introducing a new top rate on income tax itself.
Critics have long pointed out that Sir Keir Starmer’s Chancellor Rachel Reeves would increase national insurance for employers, impose VAT on school fees and plunge many pensioners into income tax. They accused Ms. Reeves of breaking her manifesto commitment at the time.
Mr Miliband, who currently serves as Net Zero Secretary, is a close ally of Mr Burnham, who had one of his staff sent to help with the Makerfield campaign. The Net Zero chief is now considered one of the frontrunners for the Treasury position.
This was despite City bosses warning such an appointment was unlikely to be received favorably by the markets and pushing for a choice such as Shabana Mahmood or Wes Streeting. Daily Telegraph It said entrepreneurs were now planning “escape plans” if Mr Miliband took on the role.
David Lesperance, international tax adviser to the super-rich, told the newspaper: “My clients are concerned that there will be a large increase in CGT and possibly an increase in exit tax as well, due to the statements of both Andy Burnham and Ed Miliband.”
“These people were worried about Labor at the last election and they’re still preparing escape plans. Now I’m getting more people preparing escape plans.”
Mr Burnham said he had not yet made up his mind on who he would make Chancellor. Equating CGT with income tax has previously been rejected by the Treasury due to concerns it would lead to less money being collected than under the current regime.
