Labour's Shift on Wealth Taxes: A New Direction for No 10?

Labour's leader Sir Keir Starmer is set to change course on wealth taxes, following warnings from his senior adviser Liz Lloyd that recent levies on the rich may be undermining economic growth. The move comes as some Labour members call for a levy on assets above £10 million, which could generate £24 billion. However, Ms Lloyd's concerns about the repercussions of abolishing non-dom status, which has led to record numbers of millionaires leaving the country, are likely to influence the Prime Minister's decision.

Key Takeaways:

• Sir Keir Starmer is set to block new wealth taxes after Liz Lloyd, his senior adviser, warned of potential economic growth implications.
• Labour members are calling for a levy of 2% on assets above £10 million, which could generate £24 billion.
• The move comes as 16,500 millionaires are projected to leave the UK this year, the biggest wealth exodus from any country in the world.
• Abolishing non-dom status has led to record numbers of millionaires leaving the country, with potential consequences for tax receipts and economic growth.
• Labour's leader Sir Keir is set to hire a new economic adviser, a political appointee, to bolster his No 10 team and give him more say over the next Budget.
• Huw Leslie, the Downing Street private secretary, is filling in as the economic adviser but cannot be involved in policy formulation.
• The Prime Minister's decision is influenced by the tension between Liz Lloyd and Stuart Ingham, the head of the policy unit, over wealth taxes and economic growth.

Statistics:

• £24 billion: Potential revenue from a 2% levy on assets above £10 million.
• 16,500: Number of millionaires projected to leave the UK this year, the biggest wealth exodus from any country in the world.

Sources:

• "The Times" news article (no author, no date)
• The Labour Party's 2024 manifesto
• The Institute for Public Policy Research (IPPR)
• Bloomberg
• The UK Parliament's Hansard records
• Labour source