Rachel Reeves has been warned about the UK’s “failed tax policy” by a top businessman who used to work for Donald Trump. Anthony Scaramucci raised millions of dollars for the US president’s first election campaign in 2016 before becoming his White House director of communications.
The former Goldman Sachs banker was fired after just 11 days when he slammed colleagues in a conversation he wrongly thought was off the record – and has since turned his fire on Mr Trump to become one of his biggest critics. But ahead of Labour’s make-or-break Budget in November, the 61-year-old founder of SkyBridge Capital told the Express the Government needs to shift its thinking on taxing wealth. “I think one of the problems Great Britain has, from my observation, is that they tie their shoelaces together before trying to run,” said the host of the Rest is Politics US podcast.
“There’s too much regulation and too much failed tax policy.”
The tax burden has soared to a record high in recent years and could hit a historic peak of 37.7% of gross domestic product (GDP) in 2027-28.
The Chancellor has already raised taxes such as employer’s National Insurance and stamp duty, but is reportedly also considering hiking income tax – despite a Labour manifesto pledge not to.
But Mr Scaramucci, who now hosts the Rest is Politics US podcast with British-Swiss journalist Katty Kay, suggested Labour might be going in the wrong direction.
“I get that poor people probably don’t like favourable tax treatment for rich people, but those people support a lot of middle-class jobs,” he said. “They can leave, which they are doing.
“I think it’s a mistake by the country to do that. I would be less focused on Left-leaning policy or Right-leaning, but what’s right or wrong for the country.”
Thousands of millionaires have reportedly left the UK since Labour came to office in protest at the tax regime.
Opponents like the Tories and Nigel Farage’s Reform UK have said the exodus damages Britain by taking wealth – and the jobs it supports – elsewhere.
Also in his interview with the Express, Mr Scaramucci warned that Prime Minister Sir Keir Starmer “could lose” to Mr Farage without a radical change in approach.
“I think the rise of these types of populist leaders usually stem from a failure of their opposition,” said Mr Scaramucci.
“I don’t know the Starmer administration as well as you, but if someone was asking me, I would say: ‘You’ve got to take more risks. You could lose to a guy like this.’
“I think that would be very bad for Britain long term.”
