Key facts
- Andy Burnham's top adviser, Louise Haigh, proposed raising capital gains and inheritance taxes.
- Haigh suggested aligning capital gains tax with income tax and introducing a 'death tax'.
- Haigh also called for loosening fiscal rules to permit greater government borrowing.
- Burnham is set to outline plans for devolution and 'reindustrialisation' in a major speech.
- The proposals come amid concerns from entrepreneurs about a potential 'exit tax'.
Andy Burnham, widely expected to become Prime Minister, is preparing to unveil significant plans for devolution and economic reform. His top adviser, Louise Haigh, has publicly advocated for substantial tax increases, including hikes to capital gains and inheritance taxes, and a loosening of fiscal rules to allow for greater government borrowing. Haigh, who is anticipated to hold a senior cabinet position, wrote in the magazine Renewal that a "full-scale reform agenda" is necessary for "meaningful economic renewal" in Britain. She proposed aligning capital gains tax with income tax to discourage unproductive capital and suggested a new "death tax" on family estates to address intergenerational fairness. These proposals precede Burnham's major economic policy speech, which will focus on devolving power away from London and promoting "reindustrialisation" and housebuilding. The plans echo Boris Johnson's "levelling up" mission but face skepticism from economists regarding the effectiveness of centralized resource allocation. Meanwhile, city entrepreneurs have expressed concerns about a potential "exit tax" on individuals leaving the UK, with some founders considering relocation abroad.