Britain slips down global personal tax ranking after Reeves raid

Core Insights - The UK has dropped five places to 25th in personal tax competitiveness among 38 OECD nations, attributed to a £25 billion tax increase on employers and a rise in capital gains tax [2][4] - The current tax system in the UK is viewed as uncompetitive and detrimental to growth, with concerns that further tax increases could exacerbate the situation [3][4] - There are fears that Labour's proposed tax hikes could undermine investment and negatively impact productivity growth in the UK [5][6] Tax Competitiveness - The Centre for Policy Studies (CPS) highlights that the UK's ranking has fallen due to the Chancellor's levy on National Insurance contributions and capital gains tax increases [2] - Costa Rica, Chile, and Portugal are cited as countries with more favorable tax conditions for individuals [3] Corporate and Property Taxes - The UK ranks 28th out of 38 for corporate taxes and is second from the bottom for property taxes, leading to an overall position of 32nd [4] - Concerns are raised that the uncompetitive tax environment could deter investment and hinder economic growth [5] Market Reactions and Economic Impact - There are warnings that tax increases could lead to higher holiday costs and a negative market reaction, potentially weakening the pound [6] - The shadow business secretary emphasizes the need for the Chancellor to avoid further tax hikes to prevent adverse effects on the economy [7] Public Sector and Spending - Calls for the public sector to reduce spending are made, with suggestions that Labour should avoid imposing additional burdens on citizens [8]