The shadow chancellor said £5bn raised by clamping down on tax avoidance will fund slew of promises on NHS and primary school breakfast clubs
Shadow chancellor Rachel Reeves also repeatedly attacked Conservative plans over non-dom tax status. Having defended the status against calls for abolition for years, in March Rishi Sunak and Jeremy Hunt announced it would adopt Labour’s policy and scrap the status. However, the way they are planning to do so has been criticised for including a significant number of loopholes.
Speaking on BBC Breakfast this morning, Reeves said:
The government’s plans that they announced in March about non-doms, they said they were taking our policy, well it turns out they’ve taken it but left a load of loopholes in it. And so if you are a non-dom you can still get out of paying inheritance tax: in the first year of their policy there’s a 50% discount, we don’t get 50% discounts on our taxes.
People who go out and work today – teachers, plumbers, doctors, they don’t get a 50% discount – why should some of the wealthiest people in the country get that discount? We would abolish that and we would put that money into frontline public services, where it belongs.”
You can ramp it up pretty quickly. At the start you might need to bring in extra resource but then you need to train people up within the government to do this work.
This isn’t rocket science, previous governments have managed to close that tax gap, as it’s called.
We’ve got to invest in and improve the customer service at HMRC because, you know, we had this urgent question in parliament just before the recess, which was about HMRC closing its phone line for six months a year. Because the service was so bad, they just decided to close the phone line. And we say, look, you have to invest in digital solutions and modernise HMRC.
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