Meet the tax-hungry zealot really scripting Rachel Reeves’s Budget | Personal Finance | Finance
Rachel Reeves and Keir Starmer acted like thieves during the election; They worked together to win power by misleading voters about their true intentions. The Prime Minister has not only betrayed the people, he has now hung his Chancellor out to dry. Starmer has already forced Reeves to make three humiliating U-turns on the winter fuel payment, benefit cuts and plans to raise income tax in this Budget.
Spineless Starmer gives in just as a few background guys get cranky. Reeves has made many mistakes, but he is the only senior figure in the Labor Party who grasps the basic idea that a country needs to balance the books. Many of his colleagues would burn billions of dollars on their pet projects, financing them with economy-destroying taxes. And that’s what will happen tomorrow.
Starmer has lost faith in Reeves after last year’s disastrous budget, so a full shadow Treasury has been called in to second-guess his every move: Darren Jones, Minouche Shafik, Dan York Smith, James Murray and Dan Tomlinson.
However, the most influential name among them is Torsten Bell. He doesn’t just advise on the Budget. He writes effectively. And from what I hear, it’s already bothering half the building. It will soon drive the rest of us crazy.
I’ve written about the fresh-faced Bell before, describing him as a man who had never encountered a tax he didn’t want to raise. He spent 10 years at a think tank called Çözüm Foundation, where he spent his days dreaming of new taxes.
Bell has no idea how things work, what motivates people, or how wealth is created. His only desire is to take other people’s money and split it, even if it means crushing growth and condemning more households to welfare.
Now he finally has the chance to reveal every ridiculous idea he’s come up with over the years, and as this list shows, there are plenty of them. Treasury officials say he talks nonstop and doesn’t listen to anyone. Since he already knows everything, why bother?
Bell was appointed principal secretary to the Treasury shortly after winning a safe seat last year. He never had to face proper voter scrutiny; it’s just that conference rooms are full of suit-clad Leftists nodding at his proposed new tax snarl.
He will not appear in front of the cameras tomorrow either. This task falls to the beleaguered Rachel Reeves; he will have to pretend it is his Budget when so much of it is shaped by Bell and Starmer’s team; Both of them came from the Çözüm Foundation. Labor MPs now describe Reeves as a ventriloquist dummy operated by Bell.
Reeves increased the capital gains tax in his first budget. Bell pushed for this. He imposed an inheritance tax on farmers, family businesses and pension funds. These ideas also belonged to him.
This time, a “mansion tax” announcement is expected for higher value properties. Another Bell idea. He has also proposed cuts to the ISA allowance and has a long list of plans to include more estates in inheritance tax.
Bell even wanted to plunder the 25 per cent pension tax-free lump sum and rip up the pension tax relief. Reeves and the Treasury killed them, but pension sacrifice plans will continue.
Reeves won another vital battle. Bell and Starmer’s friend Shafik called for a 20% exit tax on wealthy entrepreneurs moving abroad; this could see Britain’s brightest talents quickly flee. Thank God the Chancellor prevented this.
Unfortunately, he lost the war. As one insider put it: “This is the Solution Foundation’s budget. This is an experiment to let these people riot.”
Here’s what I say in Reeves’ defense. He woke up to economic reality. Still, he’ll be the one forced to sell Bell’s nonsense and take the blame when it all falls apart.
If sterling takes a hit and markets revolt, he’ll be out. But don’t celebrate. Because there’s a high probability that baby-faced assassin Bell will be waiting in the back.
The idea of Torsten Bell having free reign over next year’s budget is truly frightening. Of course, if he has any wealth left to tax.
