Surprisingly in a reportby express, we might end up missing Reeves when she’s gone. While her future is uncertain, her likely replacement is clear, and he’s even more extreme when it comes to taxes.
His name is Torsten Bell, and he seems eager to raise taxes wherever possible.
Reeves has already done serious damage. The UK economy stalled as soon as she began talking about a £22 billion financial gap. Her £40 billion budget plan, loaded with tax increases, hurt business confidence, investment, and jobs. And the effects haven’t even fully kicked in yet.
Her £30 billion borrowing spree has put the nation’s finances in a dangerous position. She’s also cut the Winter Fuel Payment, scrapped the £86,000 social care cap, and introduced harsh inheritance tax changes affecting farmers, businesses, and pensions.
But Torsten Bell might make all this look mild.
Bell leads the left-leaning think tank, the Resolution Foundation. He was quickly placed in a safe Labour seat and has climbed the party ranks faster than expected. Now, as Pensions Minister, he’s the favorite to become the next Chancellor.
Bell’s ideas are extreme and heavily focused on raising taxes. He’s suggested getting rid of the £175,000 inheritance tax allowance for family homes, which could cost couples £350,000 in tax breaks. He also wants to cut the general inheritance tax allowance from £325,000 to £125,000 and tax lifetime gifts over £3,000 a year.
It doesn’t stop there. Bell proposes raising capital gains tax to 37% for shares and up to 53% for property sales like second homes or rental properties. He also supports taxing both capital gains and inheritance when someone dies—a “double death tax.”
Other ideas include an exit tax for Brits leaving the country, higher taxes on self-employed workers and landlords, reduced pension tax-free allowances, and annual increases in fuel duty.
Reeves has already taken some of his advice, including taxing unused pension savings and scrapping reliefs for businesses and agriculture. These moves in her Autumn Budget caused significant problems.
If Bell takes over, the situation could worsen dramatically. As hard as it is to believe, people might start wishing Reeves was back in charge.
