Louise Haigh, a former transport secretary who resigned over a fraud offence, has emerged as a key economic adviser to Labour leadership contender Andy Burnham, sparking fears her hard-left tax plans could be even more damaging than Rachel Reeves' policies. Critics warn that Haigh's proposals to align capital gains tax (CGT) with income tax, impose an exit tax, and levy CGT on assets at death would drive away investment and shrink tax revenues.
Haigh's Hard-Left Tax Agenda
Haigh, who toned down her red hair but not her ideas, is pushing three classic Labour left policies: tax more, spend more, borrow more. Her flagship plan to align CGT with income tax rates would dramatically increase taxes on business sales, investments, second homes, and shares. She argues this shifts the burden from work to "unproductive capital accumulation," but critics say she misunderstands entrepreneurship.
Supporters claim the plan could raise £14 billion a year. However, HMRC's own analysis found that increasing CGT by 10 percentage points could cost the Treasury up to £3.7 billion in lost revenue, as people avoid selling assets or move abroad. "CGT is simple to avoid. If you hold an asset, don't sell it," noted the article.
Exit Tax and Death CGT: A Recipe for Disaster
Haigh has floated an exit tax to prevent people leaving Britain before cashing in assets, which critics call "sheer economic madness." Former Labour PM Tony Blair urged Burnham to bin the plan, saying "Britain cannot tax our way to prosperity." Tory leader Kemi Badenoch warned it will "completely crush investment in this country."
Haigh also wants to impose CGT on assets at death, on top of inheritance tax. This "smash-the-rich nonsense" would deter entrepreneurs, drive wealth creators overseas, and shrink tax revenues, making Labour's spending plans even less affordable, according to the article.
Burnham's Nightmare Scenario
With Burnham reportedly considering Haigh for chief secretary to the Treasury, the article warns the most left-wing government in modern British history could be replaced by an even more left-wing one. "With Haigh pulling the economic strings, we could soon find ourselves begging for Rachel Reeves to come back," it concluded.
