Starmer faces cabinet revolt over Budget tax rises that could drive wealthy away
Ministers warn Starmer that tax rises could accelerate wealth exodus
- Sir Keir Starmer’s cabinet is deeply divided over economic policy, with some ministers fearing that measures targeting the wealthy could accelerate a wealth exodus from Britain.
- Concerns have been raised that "anti-aspiration" policies, such as the abolition of non-dom status and VAT on private school fees, are harming the country and driving millionaires away.
- While some ministers advocate for "efficiency savings" and cuts to address a Budget black hole estimated between £30bn and £40bn, others support new wealth taxes like a property tax or a bank profits tax.
- A powerful group within the cabinet believes the government needs to rein in spending and reform the state, while another faction argues the rich should "carry the burden" through wealth taxes.
- Economic experts warn that Chancellor Rachel Reeves may ultimately have to break her manifesto promise not to raise major taxes to fill the substantial financial gap.