Saturday, January 13, 2024
More Labour backsliding
The Guardian reports that Labour's plans to scrap non-dom tax breaks would raise about a billion pounds less than the £3.2bn previously claimed, under an option being considered to allow a four-year grace period for those with the status.
The paper says that research suggesting that scrapping the breaks could raise £3.2bn a year was cited by Labour when it announced the plans in 2022 to scrap rules allowing some wealthy people to avoid tax on foreign earnings if they have lived in the UK for less than 14 years:
The shadow chancellor, Rachel Reeves, has said abolishing the tax break in full would raise that amount each year and that Labour would use the money to expand the NHS workforce.
However, the party is also considering new regimes for temporary residents. One option under consideration is for individuals to be be able live as non-domiciles in the UK for four years before they pay the full UK tax, it is now understood.
“We’ve actually been fairly conservative, with a small c, in terms of how much we think it will raise,” Wes Streeting told LBC on Thursday in relation to the overall policy. “We put the number [at] about £2bn; £1.6bn will go to the NHS, the rest will go to primary school breakfast clubs,” the shadow health secretary said.
A Labour spokesperson said on Friday: “We have always been clear that we will scrap the non-dom rules, bringing in a modern scheme for people who are genuinely living in the UK for short periods.”
But the party came under attack both from the Conservatives and from activists on its left over the potentially revised policy.
“Full abolition of the non-dom tax status is a common sense, popular policy,” said Hilary Schan, the co-chair of Momentum, the leftwing campaign group. “So it beggars belief that the Labour leadership is watering down an already weak commitment on non-doms, and sacrificing much-needed funds for Britain’s broken public services in the process.”
It seems that even with a popular policy like this, Labour are getting cold feet. At this rate they won't have any policies left to put in their manifesto.
The paper says that research suggesting that scrapping the breaks could raise £3.2bn a year was cited by Labour when it announced the plans in 2022 to scrap rules allowing some wealthy people to avoid tax on foreign earnings if they have lived in the UK for less than 14 years:
The shadow chancellor, Rachel Reeves, has said abolishing the tax break in full would raise that amount each year and that Labour would use the money to expand the NHS workforce.
However, the party is also considering new regimes for temporary residents. One option under consideration is for individuals to be be able live as non-domiciles in the UK for four years before they pay the full UK tax, it is now understood.
“We’ve actually been fairly conservative, with a small c, in terms of how much we think it will raise,” Wes Streeting told LBC on Thursday in relation to the overall policy. “We put the number [at] about £2bn; £1.6bn will go to the NHS, the rest will go to primary school breakfast clubs,” the shadow health secretary said.
A Labour spokesperson said on Friday: “We have always been clear that we will scrap the non-dom rules, bringing in a modern scheme for people who are genuinely living in the UK for short periods.”
But the party came under attack both from the Conservatives and from activists on its left over the potentially revised policy.
“Full abolition of the non-dom tax status is a common sense, popular policy,” said Hilary Schan, the co-chair of Momentum, the leftwing campaign group. “So it beggars belief that the Labour leadership is watering down an already weak commitment on non-doms, and sacrificing much-needed funds for Britain’s broken public services in the process.”
It seems that even with a popular policy like this, Labour are getting cold feet. At this rate they won't have any policies left to put in their manifesto.
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Labour seem to be scared stiff of doing anything that will scare off Tory leaning supporters cos of the attacks that will come.
Are they scared of the Fox news Murdoch leaning papers?
LIB dEMS AND lABOUR SHOULD KNOW THAT THE PAPERS WILL NOT PRINT GOOD NEWS ABOUT THE OPPOSITION.THAT IS WHY BOTH PARTIES SHOULD SELL THEIR POLICIES ON THE DOORSTEP OR IN SOCIAL MEDIA
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Are they scared of the Fox news Murdoch leaning papers?
LIB dEMS AND lABOUR SHOULD KNOW THAT THE PAPERS WILL NOT PRINT GOOD NEWS ABOUT THE OPPOSITION.THAT IS WHY BOTH PARTIES SHOULD SELL THEIR POLICIES ON THE DOORSTEP OR IN SOCIAL MEDIA
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