Burnham urged to rule out wealth tax amid growing capital flight fears

Prime Minister, Andy Burnham, needs to kill speculation of a wealth tax immediately, which is already encouraging wealthy individuals and investors to move assets overseas, the CEO of the independent financial advisory organisation DeVere has warned.

The warning came after Burnham declined to rule out asking the UK's wealthiest to contribute "a little more" in a recent interview.

DeVere CEO, Nigel Green, said uncertainty alone was damaging confidence, urging Burnham to rule out a wealth tax immediately to avoid further capital leaving the UK.

“A wealth tax that has not been proposed is already doing damage. Money does not sit around waiting for legislation. It moves the moment a government signals it is willing to go there, and Mr Burnham just signalled it," Green said.

He argued that wealth is highly mobile and warned that prolonged speculation would make Britain less competitive against countries such as the UAE, Switzerland and Italy, which are actively attracting wealthy individuals and investment.

Green also warned that keeping the idea alive risked accelerating the UK's wealth exodus and undermining investment, jobs and philanthropy.

"Burnham needs to put this to rest today, not let it hang over Britain for months while capital quietly heads for the door," he concluded.

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