The Prime Minister gave a doom-laden speech in Downing Street 's rose garden yesterday in which he said the country must accept 'short-term pain' for 'long-term good'.
Sir Keir Starmer 's expected hikes to capital gains tax and inheritance tax and a possible raid on pensions have sent savers into a frenzy as they fear they may have to sell shares and property to avoid losing cash.
Shadow chief secretary to the Treasury Laura Trott has hit out at the gloomy speech, which is thought to have been made to cushion the inevitable bad news to come. Read More How to shield YOUR savings, property and pension from Starmer and Reeves' Budget of Pain There are concerns that, as Labour has pledged not to raise income tax, national insurance or VAT, it will find other ways to plug what it claims is a £22billion black hole in public finances by targeting capital gains and inheritance tax.
And financial planners said they had received calls and emails from clients who were worried about capital gains tax on their properties and investments. Labour did not commit to freezing CGT, though Sir Keir has ruled out charging the levy on first homes. It only applies to second homes and buy-to-let properties.
But government-authorised analysis published last week actually suggests a hike to CGT may actually cost the Treasury more in the long run. Robert Jenrick MP speaks during the launch of his bid to become the next Conservative Party Leader on August 2 Last night Sir Keir was accused of 'breaking his promise' after repeatedly vowing not to raise levies on working people during the General Election campaign.May 27: 'Step one – economic stability. The very foundation of growth, with tough spending rules that mean we can keep inflation, taxes and mortgages low.'
June 18: 'We’ve been really clear we’re not going to be raising tax on working people. What I can say is that none of our plans require a tax rise. That is for a reason and the reason is that our focus is on getting our economy going, on building, on growing, on raising living standards and creating wealth.'
Her rival Robert Jenrick said: 'Sir Keir Starmer is not taking long to show his true colours. Fifty-three days after entering Downing Street on a 'read my lips: no new taxes' message, he is already planning to break his promise and raise taxes on middle-class Brits.' 'Keir Starmer was elected on a manifesto that he won't stick to, and he is now rolling out a series of dishonest policies for which he has no democratic mandate.'
Sir Keir told those gathered in the No10 rose garden: 'Just as when I responded to the riots, I'll have to turn to the country and make big asks of you as well, to accept short-term pain for long-term good, the difficult trade-off for the genuine solution.
News Labour Robert Jenrick Kemi Badenoch Rachel Reeves Keir Starmer
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