Andy Burnham's top adviser, Louise Haigh, has advocated for substantial tax reforms, including hikes to capital gains and inheritance taxes, and a relaxation of fiscal rules to enable increased government borrowing. Haigh, who is expected to hold a senior position in Burnham's cabinet, wrote in the magazine Renewal that a "full-scale reform agenda" is necessary for "meaningful economic renewal" in Britain.
She argued that capital gains tax should be brought closer to income tax to shift the tax burden away from earned income and towards "unproductive capital accumulation." Haigh also suggested a new "death tax" on family estates to address issues of "intergenerational fairness."
These comments precede a significant policy announcement expected from Burnham on Monday, his first since Keir Starmer's resignation as prime minister. Burnham is anticipated to detail his economic strategy, which may involve cuts to Whitehall budgets and increased funding for regional mayors.
The proposals from Haigh, a close ally of Burnham, could cause market jitters due to concerns over higher taxes and increased borrowing. Separately, city entrepreneurs have warned that an "exit tax" on individuals leaving the UK could be detrimental to the economy, with some founders already considering relocating abroad. Barney Hussey-Yeo, founder of fintech firm Cleo, urged Labour to rule out such a tax, stating it would be "devastating for the UK economy."
