Tories warn of tax bombshells after Starmer’s doom-laden Budget speech

After a speech by Sir Kier Starmer warning that the autumn budget will be ‘painful’, top Tories say that ‘nothing will be safe’.

Mr Starmer was laying the groundwork for a tax raid and said people must accept ‘short-term pain’ for ‘long-term good’.

He also warned that those with the broadest shoulders ‘should bear the heavier burden’.

Critics say that capital gains, pensions and death duties will be in the firing line.

‘Ruinous tax rises are on the way’

Shadow chief secretary to the Treasury Laura Trott has hit out at Sir Kier’s speech.

She told the Telegraph: “Starmer’s speech has made it clear. Ruinous tax rises, which he’s always planned, are on the way.

‘Pensions, investments, homes – nothing will be safe.

“And, when introduced, he will have broken his election promise to the British people.”

Labour had pledged not to raise income tax, national insurance or VAT, during its election campaign.

But says it needs to plug what it claims is a £22billion black hole in public finances.

Critics say Labour will need to target capital gains and inheritance tax.

‘Taking the British public for fools’

Tory leadership contender Kemi Badenoch told the Daily Mail: “Keir Starmer is taking the British public for fools, but his dishonest analysis won’t wash.

“He campaigned on promises he couldn’t deliver and now he is being found out.

“‘They are prioritising the demands of their trade union paymasters over investment in public services.

“But, like all Labour governments, they will eventually run out of money – paving the way for a tax raid on the middle classes.”

The former Prime Minister Rishi Sunak said: “Keir Starmer’s speech was the clearest indication of what Labour has been planning to do all along – raise your taxes.”

Clients planning mass sell-offs

However, some newspapers report that wealth managers say the speech created panic among clients planning mass sell-offs.

They add that savers fear they may need to sell shares and property to mitigate potential losses.

That’s because the government could align CGT rates with income tax, raising the higher rate from the current 20% to 45%.

Andy Butcher, of wealth manager Raymond James, told the Daily Mail: “We’ve had lots of inquiries about how to minimise capital gains tax – and whether it’s worth realising gains now and paying capital gains tax ahead of the Budget.”

Others wealth planners are reporting that savers want to liquidate their pensions in the speech’s aftermath, fearing the Labour government will make retirement pots subject to inheritance tax.

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