Economist Arthur Laffer warns Labour's tax plans could cripple UK growth

Arthur Laffer, the economist behind the Laffer curve, warned that Labour’s agenda of higher taxes and broader public control could push Britain toward economic decline. Speaking to the Sunday Telegraph, he argued that taxing workers while subsidising non-workers reduces incentives and harms job creation. Burnham reiterated his commitment to nationalising key industries such as energy and water, claiming public ownership would lower living costs over time.

Meanwhile, Chancellor John Healey faces limited fiscal space as global tensions and AI-related uncertainties strain the budget. Both leaders have signalled they may consider further tax increases despite the warning from Laffer that such moves could backfire.