Shadow Chancellor Sir Mel Stride has warned that Prime Minister Andy Burnham will “destroy investment in this country” if he introduces an “exit tax” on people leaving the country. The warning comes amid concerns that the Government is considering such a revenue-raising measure, with the Treasury refusing to rule it out ahead of the Budget.
Exit tax concerns
Sir Mel, a former cabinet minister, cautioned that an exit tax would “see wealth creators running for the hills”. The speculation has intensified since Mr Burnham entered Number 10, with fears that the tax could be used to minimise losses to the tax-take if wealthy individuals quit the UK.
Conservatives are concerned that this could involve charging capital gains tax on any increase in the value of assets such as shares and property, even if these have not been sold.
Call to rule out tax rises
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.”
Treasury response
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.”
