Is Burnham eyeing a wealth tax?
Plus: the Navy drones sending data to China, and the case against a National Care Service
He’s listening... But who to? Andy Burnham is about to embark on a tour of the UK, supposedly to hear the concerns of people on the ground. But back in Westminster, there are fears that he’s no longer paying attention to the three economic heavyweights – Andy Haldane, Jim O’Neill and Richard Hughes – rumoured to be advising him during his leadership campaign. Of the three, only O’Neill has so far been offered a role in Burnham’s Government – and he has apparently got cold feet because he thinks Burnham might bring in a damaging wealth tax.
Meanwhile Royal Navy drones have been found to be sending data to China. Read Eliot Wilson below on what this says about Labour’s policy of cosying up to the PRC.
Below you’ll find all the latest pieces from CapX, plus what we’re reading from around the web.
Marc Sidwell
Editor, CapX
Today’s Takes
Fresh thinking from CapX
A National Care Service would be a disaster
Eamonn Butler
‘The fundamental problem remains; how to share care risks fairly without bankrupting individuals or taxpayers. And the only solutions to that seem to involve a clear division of responsibility.’
Andy Burnham has proposed a National Care Service, free at the point of use like the NHS. It sounds good, but won’t work. An NHS-style universal service would be fiscally crippling and deliver poor results – and the idea has powerful critics on both Right and Left. Solving social care will take more than soundbites and gimmicks. Read More
Britain's defence procurement has a China problem
Eliot Wilson
‘Since 2024, Labour have believed they can exploit Beijing and benefit economically from a closer relationship with the PRC while maintaining their moral finger-wagging in public forums.’
The Royal Marines had to cut internet connections to cameras on one of their drones after discovering some components transmitting data to an IP address in China. It’s time to learn the lesson of the fiasco that was Huawei’s involvement in the UK’s 5G network: we cannot trust Chinese-manufactured kit. Read More
Stat of the day
Best of the Web
A Burnham wealth tax is coming
Matthew Lynn, The Spectator
‘Plenty of issues are open to debate in economics, but on wealth taxes the verdict is clear.’
Jim O’Neill was meant to repair Andy Burnham’s reputation with investors. Now O’Neill is backing away, as he is alarmed Burnham won’t rule out a wealth tax. Every country that has tried one has watched its wealthiest residents leave, yet the tax is still on the table. It would have been easy for Burnham to rule this out. The fact he hasn’t speaks volumes. Read More
🎧Best of CapX: Ceuta should be Europe’s wake-up call
Mani Basharzad
Money is the route of all progress
Maurice Saatchi, The Telegraph 🔒
‘It is a stark fact of 21st-century British life that the government and the citizen have something in common; they are both short of money.’
Could the Labour Party actually cut a tax? Imagine if our new Prime Minister had an epiphany: that money matters, both for citizens and the country. He might then realise that cutting tax – for the poorest and the richest – was the best way to break out of Britain’s stagnation. Read More
The Capitalist: Alex Tabarrok on equal pay
And if you want more...
– The last Trump election (Project Syndicate)
– How canals cool down cities (The Conversation)
– Oil looks pricier than ever. It isn’t (Daily Economy)
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It doesn't matter: it's always a tax.