Rachel Reeves’ “wealth tax” has been shredded as a “senseless” policy as the rumour mill becomes laden with speculation of what is to come in the Autumn Budget.
With the annual announcement just around the corner, political commentator Benedict Spence hit out at the concept of a tax on the wealthier in society, who have been described as those with the “broadest shoulders” by Labour.
“I can make sense in terms of it being very popular with Labour members,” he told Dawn Neesom, who asked if the guest could make sense of the tax. “Beyond that, no, I think beyond that, it’s up to anybody’s guess.”
He added that it amounted to “answers on a postcard, actually”.
Rachel Reeves’ wealth tax has been shredded as a ‘senseless’ policy by Benedict Spence
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He added: “It’s one of those things where we understand a lot of the messaging that comes from the Labour Party is all about wealth, inherited wealth, accumulated wealth, and about how this is somehow unfair”.
“The problem is, in this country, a great deal of the wealth, such as it is, is tied up in property.
“So how do you get your hands on that? It’s very difficult.”
The Chancellor is believed to be on the hunt to introduce a new mansion tax on November 26.
Under the plans, owners of properties worth ÂŁ2million and move could be charged one per cent of the amount by which the property goes above that value.
At the same time, owners of a property worth ÂŁ3million will be slapped with an annual ÂŁ10,000 bill, the Mail on Sunday reported.
Additionally, those who are homeowners of properties worth tens of millions, as well as those owning a second home, could be facing higher taxes.
“Thereâs a danger this will have some fairly negative impacts,” Neal Hudson, who is the founder of housing market data firm Residential Analysts, weighed in.
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“The top end of the market has been stagnating for the last decade already as itâs been hit by higher rates of stamp duty,” he told The Telegraph.
The latest threat of a mansion tax is joining the pile of concerns that Ms Reeves will be unveiling her latest tax raid on Britain’s wealthiest in a bid to plug a ÂŁ30billion black hole in the Treasury.
In agreement with Mr Spence, a former Bank of England has said that Labour is lacking a “coherent economic strategy”.
Lord King told Sky News: “Property taxes are an interaction between stamp duty, council tax, capital gains tax, inheritance tax.
The Budget will be delivered on November 26
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“You don’t solve that problem by just adding another wealth tax to it.”
He went on to encourage Ms Reeves to assess the entire system and “come up with a coherent view to what it should look like”.
Leading economists have forecast that Labour must source between ÂŁ20billion and ÂŁ50billion to balance spending against tax receipts in 2029/30.
The Autumn Budget will be delivered by the Chancellor in the House of Commons on November 26.
