Locals living in one of the world’s most expensive places are living in fear that Rachel Reeves will enforce a punishing wealth tax raid. Sandbanks, a millionaires' playground, is an extremely affluent neighbourhood of Poole, Dorset where properties sold for an average price of £1.25million last year, according to Zoopla.
Renowned for its gorgeous golden sand and crystal clear blue waters, Sandbanks attracts wealthy residents and a range of celebrities call it home from Jamie Redknapp to John Lennon and Liam Gallagher. Now, concerns are increasing for those living in the UK's fourth most expensive place that if Reeves raises taxes those with the broadest shoulders will bear the brunt. The chancellor is expected to raise taxes in the autumn to plug a £20billion hole in the country's finances.
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The warning comes as Reeves prepares her second Budget amid worsening economic conditions, spiralling borrowing costs, and a dramatic reversal of key Labour welfare pledges.
According to Adrian and Robert Dunford, who run the high-end local estate agency Tailor Made, those living in Sandbanks are “fairly negative with regards to what is going on in the UK”.
Adrian told The Telegraph: “Most of our wealthy clients are older, and all of them can remember a Labour government.
“Not the Blair government, but a true Labour government. The reality is that there is an expectation that the wealthy do tend to be focused on.
“When I speak to wealthy individuals, some are just leaving the country and are fairly negative with regards to what is going on in the UK. Whereas others say they are happy to pay their tax and remain here.”
The Chancellor has refused to speculate about tax rises, but has reiterated the Government's pledge not to raise VAT, income tax and National Insurance contributions for "working" people.
Earlier this year Conservative leader Kemi Badenoch said Labour are plotting to raise taxes to “pay for their mistakes” while shadow chancellor Mel Stride said “grafters” will be clobbered.
Lynn Conway says it would be a “real worry” if the Chancellor were to implement further tax increases and has her eyes on selling her £1.5m house once the property market picks up.
Average property prices in Sandbanks have fallen 3pc to £1.3m in the past year, according to Rightmove.