Sunday, December 22, 2024

Labour’s bitter war on wealth has already flopped

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Finally, the UK should be throwing open its doors to the world’s wealthy. Over the last couple of years, lots of other countries have welcomed the world’s entrepreneurs with digital nomad visas, start-up concessions and capped tax rates. Portugal, Italy and Greece all have deals available for anyone with significant assets who wants to move there, and many more countries will join them. 

The UK, with its vibrant cultural life, trusted legal system and wealth of financial and consulting advice could easily be winning this global race, attracting talent and money from around the globe. Instead, we are making ourselves dramatically less attractive at a time when our rivals are becoming more so.

True, the chances of Reeves learning any of those lessons is probably about as high as her refusing a new handbag, or her colleagues some concert tickets. Even so, the evidence may soon be as clear as day. 

The non-dom clampdown will be a catastrophe that, far from allowing extra spending, will mean Reeves has to raise other taxes even more, or else borrow the money instead.

The blunt truth is this. The new Labour administration may talk about fiscal responsibility, and lifting growth. But it is a government driven by an ideological class war on wealth and success. It is more interested in punishing the rich than raising revenues. It is small-minded, petty and counterproductive – and it will leave us all poorer.

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