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Sadiq Khan says Labour’s planned wealth tax will hit ‘rich in equity but short of cash’


London Mayor Sadiq Khan said Labour’s planned wealth tax would hit “the rich but cash-poor” and cause the wealthy to “flee” from the UK

  • Keir Starmer outlines plans to tax raid homes and stocks if he takes power
  • But Khan cautioned about the potential side effects of such proposals
  • The prime minister also warned against harming the southeast with his “settlement” plans.










Sadiq Khan said Labour’s planned wealth tax would hit the stock-rich but cash-poor and cause the wealthy to “flee” the UK.

Sir Keir Starmer warned again in September that he would launch a home and stock tax raid if his party was in government, warning that it was time “the broad-shoulders should pay”.

Homeowners do not pay the tax on the sales of their main home, but it applies to any other property they own, such as vacation homes and rental properties, when they are sold.

However, Mayor of London Mr Khan has distanced himself from such proposals, warning of possible spillovers.

Sadiq Khan said Labour’s planned wealth tax would hit the stock-rich but cash-poor and cause the wealthy to ‘flee’ the UK

The Mayor of London also warned the Prime Minister that any plans

The Mayor of London also warned the Prime Minister that any “settlement” plans must not simultaneously harm the southeast.

“We always have to be vigilant about the unintended consequences of hypothetical tax increases,” he told the Politics Chopper podcast.

I am fully aware of the fact that it is not I who create the wealth and prosperity of our city, it is the small companies, those innovators, those who hold the CEO positions of the big companies.

I don’t compete with Manchester, Liverpool, Edinburgh and Glasgow, I compete with Paris, Singapore, New York and Hong Kong. What I don’t want is to escape from London to these global competitors.

Mr Khan went on to say he had warned Prime Minister Boris Johnson, who was also his predecessor as mayor, that any “compromise” plans must not simultaneously harm the southeast.

The prime minister last week faced accusations that he had “betrayed” the North by scrapping master plans to improve the railways.

Conservative MPs and local leaders joined in the brutal reaction when the prime minister tried to defend his “ambitious and unprecedented” reform of city links.

Johnson was accused of giving his important Red Wall constituents “scraps off the table” after ceding the HS2 route to Leeds in favor of the Birmingham line to East Midlands Parkway.

The HS3 line connecting Manchester and Leeds – known as the Northern Powerhouse Railway – has also been suspended.

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