Labour’s Idiocy with the Wealthy23 Apr 2025 13:02
“The Government borrowed £14.6bn more than expected last year as non-doms fled Britain, undermining tax receipts and blowing a hole in Rachel Reeves’s plans.
Capital gains tax, charged on the profits made on the sale of assets, brought in £11.2bn in the first three months of 2025, down from more than £13bn in the same period a year ago, the Office for National Statistics said.
Self-assessed income tax revenues also came in lower than the Office for Budget Responsibility anticipated.
Weak growth in bonuses in financial services also hit growth in pay-as-you-earn income taxes and national insurance. In total, government revenues for last year came in £7.8bn below forecasts, the OBR said.
Alongside surging spending on benefits, public sector pay and debt interest payments, it meant the Treasury borrowed £151.9bn in the financial year ending last month, £20.7bn more than in the previous 12 months and £14.6bn more than the OBR predicted just last month.
Andrew Griffith, shadow business secretary, said the weak tax receipts are a direct result of the Chancellor’s record-breaking £40bn of tax increases in her October Budget.
“If you set out with a vengeance to destroy incentives to work and chase wealth creators overseas, it should be no surprise when tax revenues fall short and borrowing surges,” he said.
“A sensible Chancellor would change course urgently. But I am not sure we have one of those.”
Maxwell Marlow at the Adam Smith Institute, said it indicates the Government is driving the global rich out of the country, and so losing the taxes they would have paid on UK shores.
“The OBR’s correction that Capital Gains and Self-Assessed Income Tax receipts are £1bn below estimates is highly concerning, and could be linked to the departure of thousands of high net worth non-doms,” he said.
“By killing the golden goose with these tax reforms, the Government has chased away wealth creators, and thus brought in less tax revenue than they anticipated. ASI modelling shows that, by 2035, the British economy could be £14bn worse off every year, than if the government did not abolish the status.”
Who voted for these morons ? Not me…..
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