Andy Burnham's Tax Overhaul Sparks Wealth‑Flight and Business‑Rate Reform Concerns

Incoming UK Prime Minister Andy Burnham is set to launch a sweeping tax agenda that could add an estimated £38 billion in new taxes, including proposals for a land‑value levy, higher inheritance and capital‑gains taxes, and a levy on online sales. Reform UK estimates the total tax rise under Burnham could exceed £100 billion annually, while a think‑tank report urges scrapping National Insurance, stamp duty and inheritance tax to revive growth.

Investors are bracing for higher taxes, with a Wealth Club poll showing 96 % expect increases in the next year and 45 % cite tax hikes as their biggest wealth risk. Analysts warn a proposed 1 % annual land tax could push household bills in London and the South East above £50,000 a year and depress property values, potentially triggering the largest capital‑flight episode in a generation. De Vere Group estimates 16,500 millionaires left the UK in 2025, taking roughly $92 billion with them.

Business groups have formed the Real Rates Reform Alliance, calling for a 2 % tax on online sales to fund a 37 % cut in business rates for brick‑and‑mortar firms. The alliance says rising rates are forcing many firms to raise prices, cut investment or reduce staff. Burnham has signalled willingness to reform business rates but has not detailed how the broader tax reforms will be staged.