Sir Keir Starmer is expected to reject calls for fresh wealth taxes, following concerns from one of his top advisers that recent tax changes may be harming economic growth. Liz Lloyd, the Prime Minister’s Blairite policy chief, has reportedly raised alarm over the fallout from scrapping non-dom status, which has coincided with a record exodus of millionaires from the UK. The government now faces a £5 billion shortfall following a recent retreat on welfare reform, intensifying pressure to find new revenue sources.
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Despite calls from Labour’s left wing for a 2 per cent levy on assets over £10 million—estimated to raise £24 billion—Downing Street appears to be aligning more closely with Lloyd’s position. Sir Keir has previously warned that taxing the wealthy is not a “bottomless pit” and has emphasised the need to prioritise economic expansion. He is reportedly preparing to strengthen No 10’s influence over fiscal planning by appointing a new economic adviser—distinct from civil service staff—to counterbalance Treasury dominance in Budget negotiations.
Amid signs of internal tensions, speculation is mounting over the future of Stuart Ingham, a senior policy adviser with more left-leaning views who has worked with Sir Keir since 2016. Lloyd, once Sir Tony Blair’s deputy chief of staff, has gained considerable influence since joining earlier this year. Some within the party now expect Ingham to be demoted as Starmer consolidates control over Downing Street’s strategic direction. Meanwhile, other advisers aligned with pro-wealth tax think tanks have reportedly been sidelined.
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The Prime Minister has publicly insisted he remains united with Chancellor Rachel Reeves, despite emotional scenes in Parliament this week. Nonetheless, he appears determined to block any Treasury-led push for additional levies on the wealthy. Analysts warn that the departure of 16,500 millionaires from the UK this year—the highest number globally—could not only lower anticipated tax revenues but also lead to wider economic consequences if investment and businesses are taken abroad.
