Business sounds the alarm over Labour’s ‘populist trap’ tax plans: Fears Keir Starmer could hammer economic growth as he refuses to rule out hiking capital gains if he wins election
Business leaders have been pushing Work to avoid the ‘populist trap’ of raising capital gains taxes if the party wins the elections general electionwarned that this could affect economic growth.
Sir Keir StarmerThe US party has explicitly ruled out an income tax increase, VAT, corporate tax and national insurance. when he comes to power on July 4.
But the same certainty is yet to come to CGT, raising concerns among City figures. The Tories have pledged not to increase CGT for the next five years as part of a relief package for homeowners.
Brent Hoberman, Executive Chairman of Founders Forum and former CEO of Lastminute.com, told the Financial Times that increasing CBT was a ‘populist trap’. “If we pursue policies that are not globally competitive, it will cost us more and the country will have to find other ways to pay for the costs. NHS etc.,” he said.
And Sir James Wates, chairman of the Institute for Family Business, added: ‘The whole point of capital gains tax is that it becomes a barrier to growth, and the Labor Party has said how important growth is.’
When asked if Labor plans to increase capital gains tax, the shadow health secretary said Wes Straating said today: ‘Our manifesto comes out on Thursday and I can certainly confirm that not a single policy in that manifesto requires Labor to increase capital gains tax.’
Brent Hoberman, executive chairman of Founders Forum and former CEO of Lastminute.com, told the Financial Times that increasing CGT was a “populist trap”.
Asked whether Labor plans to increase capital gains tax, shadow health secretary Wes Streeting today said: ‘Our manifesto is out on Thursday and I can certainly confirm that not a single policy in that manifesto requires Labor to increase capital gains tax.’
Chancellor Jeremy Hunt has unveiled a new ‘Family Home Tax Guarantee’ which will see no increases in stamp duty and capital gains for the next five years, and no revaluation or addition of council tax bands.
Labor is said to be considering a dozen tax rises in an autumn budget to help save public services.
Shadow Chancellor Rachel Reeves is said to be putting together a package of measures to boost revenues if the party wins the election.
According to the Guardian, Ms Reeves could apply for a ‘doctor’s mandate’ for the measures, arguing that they are necessary due to the dire state of the government’s books.
The Tories seized on the reports to step up their attack after Rishi Sunak targeted Keir Starmer with accusations he would increase tax on families by £2,000 during the first TV debate earlier this week.
Chancellor Jeremy Hunt has unveiled a new ‘Family Home Tax Guarantee’ which will see no increases in stamp duty and capital gains for the next five years, and no revaluation or addition of council tax bands.
