Having only been in power for six months, it is already clear that, as with the previous Conservative Government, the new Labour Government has killed the spirit of entrepreneurship and thus the potential for growth.
Under both traditional parties in recent years, the economy has stagnated, and this has punished the taxpayers of the UK. The Labour Government and the current Conservative Party continue to fail in setting out a vision for growth and do not acknowledge the power of inspiring entrepreneurship.
Instead of driving forward any kind of economic growth, both the Labour and Conservative Governments have overseen the policy of continuous taxing and spending to deliver “growth.” However, this has only resulted in record levels of taxation on both individuals and businesses, ultimately failing to attract any wealth creators and instead attracting wealth takers.
Since Labour has come to power, we have witnessed the flight of high-net-worth individuals from the UK, with over 10,000 millionaires leaving the UK last year. Many knew the impact a Labour Government would have on their ambition. We are losing our wealth creators, which impacts any opportunity for growth.
I personally know many non-dom individuals who have now halted their planned investments into the UK and are now investing in Dubai and Greece, among other countries, whose innovative tax systems attract high-net-worth individuals. Countries such as the UAE and Greece have enacted innovative tax solutions, such as flat-taxes.
Greece has enforced a €100,000 flat-tax for foreign investors, while the UAE has a general low tax system which attracts investors to create entrepreneurship rather than a system which punishes entrepreneurs.
Keir Starmer is failing to deliver the growth he promised (Image: PA)
However, an alternative to low growth and a stagnant economy which punishes entrepreneurs is possible. That alternative is Reform UK. Reform UK is the only political party displaying the common-sense approach led by leaders with business experience, which is needed to show a clear path to growth and give confidence that our economy is being led through experience. The answer for any entrepreneur is now to back Reform UK as the only political party to back growth.
The evidence to support this is clear through Reform UK’s current economic policies. Policies such as Reform UK’s policy to finally “Make Work Pay” through the lifting of the Income Tax threshold to £20,000 per year, while increasing the higher rate to £70,000, is exactly the kind of policy to bring ambition back to the UK and allow people to believe they are working to thrive rather than just to live.
Reform UK’s pledge to abolish Inheritance Tax for all estates under £2m, and the option to donate the tax above £2m to charity, is the kind of innovation we have been lacking while promoting ambition to thrive.
Reform UK’s policies also show their belief in business, which is in stark contrast to the current Government and the actions of previous Governments. Policies such as Reform UK’s pledge to lift the VAT threshold to £150,000 and their mission to ultimately reform the tax system into a simplified model for businesses are the policies that should be supported.
It is clear that these kinds of policies are only being discussed by Reform UK. These are the policies which will reignite ambition and the spirit of entrepreneurship needed for growth. However, Reform UK can and should go even further to fully embrace the levels of innovation needed for growth.
We need to go further and adopt the lessons of countries such as the UAE and Greece. For example, to simplify our tax system, we should adopt a flat-tax model which can be variable annually based on the state of the economy, as Greece and Italy have done.
This should also be made accessible to foreign investors to attract the much-needed foreign investment we need to grow, but also to finally bring back the attractiveness of the UK as a place to live and invest.
As a country, we must return to an economy and tax system which incentivizes entrepreneurs to establish businesses and settle in the UK. This will include overhauling our current tax system and replacing it with a minimum and maximum percentage tax system, transparently broken down so taxpayers can see exactly where their taxes go.
For example, percentages would be broken down into areas such as the police, the armed forces, NHS, etc. This would be made available via a digital tax platform where taxpayers would have the ability to increase or decrease the percentage they pay into each area.
Further to this, we should also establish a list of national infrastructure projects and start-ups that taxpayers can use their remaining percentage to invest in. In exchange, taxpayers would receive a return on their investment, which can lower their future tax payments or provide a direct payment that can be reinvested.
A positive future for growth is possible, and it is clear that only Reform UK is currently offering this positive future for growth.
