The old Conservative slogan, ‘Labour Isn’t Working’, deserves a modern update, fasten your seat belts, here we go:
‘Labour Is Not Working — And It Doesn’t Have To.’
That, in a nutshell, is the governing philosophy of today’s Labour Party.
Contra-intuitively, the objective is not to produce policies that expand the economy, attract investment, or generate wealth. The point is to throw ideological red meat to the party faithful! This comprises a steady diet of anti-business, anti-success, and anti-aspiration measures, designed to satisfy the socialists’ insatiable appetite for ‘class warfare’.
If the economy suffers in the process – so, be it! After all, the applause from the party conference is all that matters, not the nation’s welfare.
Renters’ rights, fewer rentals
For example, the Renters’ Rights Bill was marketed as a triumph for tenants and the glee on Angie Rayner’s face when she spearheaded this piece of daft legislation, was palpable. However, in reality it has frightened off thousands of private landlords into selling their buy-to-let properties… duh! This is the problem when you have career politicians interfering in the dynamics of markets – the word ‘clueless’ comes to mind.
The consequence? A shrinking supply of rental homes and rapidly rising rents.
Those hardest hit are not wealthy professionals in fashionable postcodes, but vulnerable families, young workers and low-income tenants competing for an ever-diminishing pool of properties.
In Labour’s world, if a policy makes housing less affordable but allows ministers to denounce ‘greedy landlords,’ it is considered a political success. What a topsy-turvy world this represents.
Workers’ Rights Bill
The so-called Workers’ Rights Bill is a classic example of Labour’s economic vandalism dressed up as moral virtue.
Combined with higher National Insurance contributions and aggressive increases in the minimum wage, it sends a clear message to employers:
Hiring people is becoming uneconomic, a legal hazard, and to be avoided where possible.
When the cost of employing someone rises, employers do what logic dictates – they hire fewer people.
The result is predictable. Youth unemployment rises, opportunities disappear, and the very people Labour claims to champion are left standing outside the jobs market looking in.
When you add this social scourge to the bloated welfare programme that has ballooned since Covid, you have a country in sharp decline and before we look around, we will be back to the dark days of the 70s, if this government carries on with its ideological pursuits.
But never mind, the trade unions are delighted, and that is what really counts to the Labour Party.
Bandits, who falsely claim Universal Credit but ‘moonlight’ for cash, have never had it so good and are far better off than their tax paying, hard-working peers in conventional jobs.
Non-dom reforms – exporting the tax base
Labour’s assault on non-domiciled taxpayers was sold to the Electorate as a painless way to fund more doctors and nurses for the NHS. If you tax the rich, we were told, the money will just roll in: How ‘Disneyesque’ was this?
The reality is rather different
Need we remind ourselves that there is nothing more mobile than a high-net-worth individual escaping from a draconian tax regime, as they are not chained to British soil. They have options and many have exercised them, and rightly so.
Monaco, Dubai, Milan, and other low-tax jurisdictions are rolling out the red carpet while Britain waves goodbye to these precious entrepreneurs, investors, and job creators.
The exodus of thousands of wealthy residents means fewer investments, fewer jobs, less philanthropy and ultimately, less tax revenue for HM Revenue and Customs, as is evidenced by The Sunday Times Rich List 2026.
It is the fiscal equivalent of ‘slaughtering the goose that lays the golden eggs’ and then wondering why breakfast is so spartan.
VAT on private schools – equality through decline
Now let’s turn to the next folly of the Socialists; the decision to impose VAT on private school fees. This was sold to us as another ‘fairness’ measure that would somehow enrich the public purse. Go figure…
Instead, some independent schools have faced closure, whilst many pupils are shunted into the already overstretched State sector.
This creates additional costs for taxpayers and greater pressure on class sizes, resources, and teaching standards. What a result!
But the economics of this issue were never the point, if you get my drift!
For many on the Left, there is a real sense of schadenfreude by penalising those who make sacrifices to educate their children privately. If educational standards fall but social resentment rises, the policy is judged a triumph. What a peculiar, inverted scenario.
Instead, they should give tax incentives to those who use private schools, which will ‘take the load’ off the State school system, and pupils in both these will be far better off.
Politics of envy
This is the central truth about modern Labour economics: the numbers are secondary, and symbolism is everything.
Lest we forget, a policy does not need to raise revenue, it does not need to improve productivity or create jobs, and it doesn’t even need to work. How sad is that?
It merely needs to signal virtue and provide a gratifying opportunity to ‘soak the rich,’ scold business owners and reassure the activist base that capitalism remains the enemy of socialism.
This is a government obsessed by gesture, with economics driven by slogan and taxation imposed by resentment.
The national cost
The cumulative effect is profound:
+ Employers become more cautious
+ Investors become more nervous
+ Entrepreneurs become more mobile
+ Landlords become sellers
+ Wealth creators become expatriates
+ The tax base becomes weaker.
Britain grows poorer while ministers congratulate themselves on their moral superiority.
Conclusion
Labour’s economic programme resembles a theatrical performance in which ideology takes centre stage and arithmetic is verboten.
The purpose was never to make the country richer but to make Labour electable and this cynical objective certainly succeeded in July 2024.
Unfortunately, whatever your politics, we should take no pleasure in witnessing the turmoil of the present Labour Party leadership chaos, since it does appear that whoever is the Prime Minister until the end of the electoral term, will ensure that we will all “…suffer the slings and arrows of outrageous fortune…” (Hamlet Act III Scene l – William Shakespeare).
Whether it’s Starmer or Burnham, it is like being a ‘kid in hospital in the 60s and being told that Jimmy Savile’s visit has been cancelled, only to hear in the corridor the sound of a didgeridoo, followed by a chorus of Tie Me Kangaroo Down Sport’.
Trevor Abrahmsohn is managing director of Glentree Estates in north London.
Is the great British love affair with property finally on the rocks?
Comments (5)
Historically Labour always leaves the country in a worse mess than when they took over. They don’t care. While in office they introduce all the measures planned before they were in power. Starmer has broken even Labour’s past record. Mass immigration being first on everyone’s mind. We have mass unemployment among youngsters and few jobs especially in hospitality but Starmer wants to invite young people from 27 European countries to come here. I rarely increase rents simply because I value good tenants more than rent increases but since I handed my tenants the new Renter’s info they are concerned I will be introducing an annual rent increase. Peace of mind when tenants are honourable is worth more to me but fortunately my small block of 5 flats is mortgage free. I do not believe we have seen the end of landlord bashing, at least not while Labour are in power. They want to see the end of private landlords but never mention the untold numbers of evictions this would cause.
So here’s the thing- blaming Labour for an assault on the PRS is way too premature. Everything the PRS currently faces was implemented by a Conservative government. S24, increased SDLT, The Renters Reform Bill (remember that- not only did they start this, they also chose to sack it off at the last minute and hold an election instead).
Tax. If there’s one thing we love to moan about more than anything in this country it’s tax and what this might mean for the super wealthy who barely pay tax here anyway. The most iconic and wealth-generating period in America’s history was around 94% for top earners- although ‘real world’ calculations (after write-offs) show this to be more like 53%. Finland, Denmark and Japan all have substantially higher tax rates- are these countries bereft of entrepreneurs and innovation? Nope. Do their millionaires & billionaires flee the country to tax havens? Nope. The founding Samsung Family just paid the highest ever inheritance tax bill in S Korean history of $8Bn – their reaction to this? “paying taxes is a natural duty of citizens”
Whilst minimum wage increase and NI insurance too have pinched business, are we seriously saying people should work for wages they simply can’t afford to live off so employers can have better margins? If we want to keep the pension triple lock and have money for future generations how do we achieve this without NI increase? Don’t bemoan it if you don’t have a viable alternate solution.
The policies are so ‘anti business and anti growth’ and yet ‘The UK’s recent growth rate has outperformed several other G7 nations, including the Eurozone average.’ Achieving this despite the negative impact of Brexit (another great Conservative policy) seems even more impressive.
Im no fan of Labour of Keir- but lets not blame Labour for everything because it’s easy to- lets remember the mess the last lot left after 14 years. Lets not bemoan solutions to large issues we face- without something as an alternative to propose.
We get it- in an ideal world everything would run perfectly but we’d pay no tax- now back to the real world.
You know, it wasn’t an atrocious article, as blinkered and one sided as I’d expect from Abrhamsohn, but not atrocious.
Until that last paragraph, a cheap joke about two of the UKs most infamous paedos? Guess money doesn’t buy class after all.
WELL DONE. 🙂 This is the best article I have read for years – SO TRUE.
PLEASE can somebody get this in the national newspapers as well.
Well done Property Eye!!
Oh, absolutely spot on! The politics of envy fuelled by divisive hatred.
Labour are indeed socialism at its very worst, despising everything in any way aspirational.
We are taxed so heavily it makes any attempt to improve our lives pointless. They have taken away all hope and excitement for the future.
No-one will take risks, start a business, buy property, seek promotion, start a family, improve their homes etc without stable rewarding government policies.
What a desperate shame for this country that entrepreneurialism is crushed under the boot of Rachel Reeves.