Sadiq Khan stated that Labour’s proposed wealth tax on the wealthy would affect those who have ‘equity rich, but cash poor’. This will cause a “flight” of high-income people from the UK.
Sir Keir Starmer had warned that tax raids would be launched on shares and homes if his party was elected to Government in September.
While homeowners don’t have to pay tax when their homes are sold, it does apply to other properties they may own like holiday homes and rental property.
London Mayor Khan, however, has resisted such suggestions, warning about potential negative consequences.
Sadiq Khan stated that Labour’s proposed wealth tax on the rich would affect those who are “equity rich, but cash poor” and lead to a flurry of wealthy people leaving the UK.
The London Mayor has also warned the Prime Minister that any ‘levelling up’ plans must not simultaneously damage the South East.
He told the Chopper’s Politics podcast: ‘We have always got to be careful about the unintended consequences of hypothetical tax increases.
“I am very aware of the fact it is not me who creates wealth and prosperity here in the city. It’s small businesses that are innovative, chief executives at large companies, as well as those who have been innovators.
‘I’m not competing with Manchester, Liverpool and Edinburgh. Instead, I’m competing against Paris Singapore New York Hong Kong. The only thing I do not want to see is a flight from London to these global competitors.
Khan continued to state that he warned Boris Johnson (his predecessor as mayor) about the dangers of a ‘levelling-up’ plan.
Last week’s Premier was confronted with accusations of having ‘betrayed the North’ by cutting flagship rail projects.
As the Prime Minister tried to defend his ambitious and unrivalled overhaul of intercity links, Conservative MPs joined local leaders in violent protest.
Mr Johnson was accused of giving his crucial Red Wall voters ‘scraps off the table’ after the HS2 route to Leeds was ditched in favour of a Birmingham to East Midlands Parkway line.
The HS3 link between Manchester and Leeds, also known as Northern Powerhouse Rail, is being canceled.