Rachel Reeves, the British Chancellor of the Exchequer, made it clear that she would not violate financial regulations and refused to increase borrowing. At the same time, she emphasized that, under the current economic situation, increasing borrowing could bring long-term burdens and risks. She has chosen other ways to promote economic stability and growth and revealed that the upcoming budget will focus on reducing inflation.
The British Budget | The Finance Minister plans to levy a 20% asset tax on the rich who leave the UK
In recent years, with Brexit and changes in tax policies, some wealthy British citizens and business owners have chosen to move to countries with lighter tax burdens, such as Switzerland and Singapore. This ‘outflow of the rich’ phenomenon has not only led to a reduction in tax revenue in Britain but has also raised concerns about the outflow of wealth.
In this context, the British Finance Minister introduced a new asset tax policy, which aims to prevent high-net-worth individuals and business owners from transferring their wealth overseas by levying a certain proportion of taxes, thus ensuring the stability of the British tax base.
Rachel Reeves plans to levy a 20% asset tax on the wealthy who leave Britain. This tax rate will apply to certain assets that are still held after leaving the UK, especially those that may be transferred to countries with low tax rates.
Objective: The main purpose is to ensure that these wealthy individuals will not choose to move because of tax differences, allowing them to continue contributing to public finances in Britain.
Target audience: It is primarily aimed at high-income groups, business owners, and individuals with substantial financial assets.
Rachel Reeves also stated that the November budget will focus on reducing inflation, allowing interest rates to be lowered to a level that “supports economic growth” and ‘improves the cost of living.’
However, Rachel Reeves refused to respond to whether she would maintain her campaign promise not to raise taxes on the working class. She hopes that voters will focus more on ‘doing the right thing’ rather than simply concentrating on whether she fulfills her campaign promises.