Treasury disbanded non-dom tax policy unit weeks before budget, sources say

Exclusive: Officials fear government is ill-prepared for lobbying from wealth advisory industry after taxation overhaul

The Treasury disbanded a unit tasked with offshore and non-dom tax policy weeks before announcing significant changes in the budget to the way foreign residents are taxed, sources have said.

The unit, which comprised technical experts on offshore tax issues, included specialists on non-dom policy. These officials would, according. to the sources, have been expected to help manage the implementation of a replacement for non-dom status as outlined by the chancellor this week.

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Budget 2024 live: Jeremy Hunt cuts national insurance, abolishes non-dom status and raises child benefit threshold

NI cut of 2p announced, along with new tax on vapes, end of tax relief for holiday lettings and more cash for NHS IT system

Jeremy Hunt is expected to extend the windfall tax on energy companies in the budget to help fund his national insurance cut. Extending the windfall tax is a Labour proposal that the Tories used to dismiss, and, according to a Daily Telegraph story, Douglas Ross, the Scottish Conservative leader, is so angry about the move that colleagues thought he might resign. Ross is MP for Moray, in the north-east of Scotland, and he is worried that the potential impact on the oil and gas industry in Scotland will cost the party votes.

In their story, Nick Gutteridge, Dominic Penna and Simon Johnson say Ross had a row with Rishi Sunak about this at a reception on Sunday night. They report:

The leader of the Scottish Conservatives had doggedly sought out Mr Sunak across the crowded, stifling room, determined to give him a piece of his mind about the Treasury’s plans to extend the windfall tax on North Sea oil and gas giants for an extra year.

What followed was a “heated” discussion between the pair, with Mr Ross warning the move would hammer the Tory vote north of the border and the prime minister countering that it was necessary to deliver a National Insurance cut for millions of workers.

Glen O’Hara, professor of modern history at Oxford Brookes University, points to the gaping trade deficit left for Labour in 1964, when outgoing Tory Chancellor Reginald Maudling infamously left a note for his successor reading: “Good luck, old cock … sorry to leave it in such a mess.”

Conservative Chancellor Norman Lamont’s pre-election budget in 1992 introduced a lower rate of income tax which Labour opposed, allowing the Tories to portray them as a “high-tax party.” The Tories unexpectedly went on to win the subsequent poll.

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UK fuel duty cut is regressive policy that benefits the wealthy, study finds

Chancellor’s 5p freeze will save £60 a year for well-off motorists compared with just £22 for lower earners

Retaining the fuel duty cut in the budget is a regressive policy that benefits the wealthiest in society, who will save £60 a year, while those who earn the least will save just £22, according to analysis.

Jeremy Hunt on Wednesday announced an extension of the 5p cut in fuel duty brought in during 2022, for which he has won plaudits across the rightwing press.

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Budget 2024: Jeremy Hunt announces 2p cut in national insurance

Chancellor also scraps ‘non-dom’ tax breaks and slashes capital gains on property in pre-election gambit

Jeremy Hunt has announced a 2p national insurance cut in his budget as a pre-election gambit to revive flatlining opinion poll ratings and reboot Britain’s economy from recession.

In what could be the last major economic intervention before voters go to the polls, the chancellor said the government was making progress on its economic priorities and could now help hard-pressed families by permanently lowering certain taxes.

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UK spends least among major European economies on low-carbon energy policy, study shows

Britain spent about £26bn in three years on low-carbon measures, less than Italy, Germany, France and Spain, Greenpeace finds

The UK spends less on low-carbon energy policy than any other major European economy, analysis has shown, despite evidence that such spending could lower household bills and increase economic growth more than the tax cuts the government has planned.

Spending on low-carbon measures for the three years from April 2020 to the end of April 2023 was about $33.3bn (£26.2bn) in total for the UK, the lowest out of the top five European economies, according to an analysis by Greenpeace of data from the International Energy Agency.

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Sunak suffers defeats in House of Lords over Rwanda bill – as it happened

Prime minister suffers defeats in House of Lords over Rwanda bill. This live blog is closed

There will be one urgent question in the Commons today at 3.30pm, on the Home Office’s decision to publish 13 reports from the former independent chief inspector of borders and immigration last week on Thursday afternoon.

The former minister Paul Scully has announced he will stand down at the next election in a statement suggesting the Conservative party has “lost its way” and is heading down “an ideological cul-de-sac”.

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Hunt scrambles to raise revenue as OBR slashes scope for tax cuts in budget

Chancellor considers unexpected tax rises such as abolishing non-dom status after latest forecast

Jeremy Hunt’s scope to make tax cuts in next week’s budget has been reduced further this week, according to Treasury insiders, leaving the chancellor considering emergency measures to raise revenue.

Recent forecasts from the Office for Budget Responsibility (OBR) are said to have given the chancellor less fiscal headroom than hoped, pushing him to consider unexpected tax rises such as abolishing the non-dom tax status.

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Jeremy Hunt ‘could adopt Labour tax-raising plans’ – as it happened

Chancellor reportedly considering energy windfall levy as well as scrapping the non-dom status

The Conservative peer and former MP Stewart Jackson has also made the point about Rishi Sunak’s comments yesterday echoing what Suella Braverman has been saying. (See 9.25am.) He suggests Sunak is a weathercock, “buffeted by events”.

Rishi Sunak is now saying what #SuellaBraverman rightly said four months ago, and for which she was sacked. Tony Benn astutely divided politicians as between signposts and weathercocks. One can think ahead, the other is buffeted by events. We know which one is which, don’t we?

We commend the prime minister on his powerful speech at the CST dinner last night, pledging more funding to protect the Jewish community, outlining a new protocol to safeguard our elected representatives and effectively police protests, and drawing a clear line between democratic dissent and mob intimidation.

The last few months have seen an extreme rise in antisemitic hate in the UK, which has had a significant effect on British Jews. The prime minister’s announcement has made it clear - those bringing chaos to our streets and academic institutions will no longer be allowed to act with impunity.

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Jeremy Hunt’s budget giveaway ‘will act as sweet filling in tax sandwich’

Thinktank says juicy cuts this year follow far bigger increases in 2023 and precede planned ‘chunky rises’

Jeremy Hunt’s expected pre-election giveaway budget will be sandwiched between £20bn of tax increases already implemented and a further £17bn of hikes pencilled in for after polling day, a thinktank has said.

The Resolution Foundation said it expected Hunt to freeze fuel duty and cut income tax on 6 March but warned the chancellor’s “tax sandwich” was based on the “fiscal fiction” of £30bn of spending cuts in the next parliament.

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Sunak is warned spending squeeze could lead to Conservative party wipeout at election

As fresh party infighting erupts after two byelection losses, the right are targeting public service funding to pay for tax cuts while others urge restraint

Rishi Sunak is being warned he risks taking his party further towards disaster by sanctioning a new public spending squeeze in a desperate pursuit of pre-election tax cuts, as more Tories said they feared an election wipeout.

With more infighting erupting this weekend after two huge byelection losses in former safe seats, Treasury officials are examining cuts to public spending should they be needed to fund tax cuts, demanded most vociferously by the right of the party.

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Jeremy Hunt ‘considering spending cuts’ to fund pre-election tax giveaway

Treasury looking at reducing projected rise in public spending from 2025, FT reports citing insiders

Jeremy Hunt is considering making billions of pounds of spending cuts to fund pre-election tax cuts in the next budget, according to a report.

The chancellor is looking at “further spending restraint” after 2025 if official economic forecasts suggest he does not have enough headroom to pay for “smart tax cuts”, the Financial Times reported, citing Treasury insiders.

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Rishi Sunak paid effective tax rate of 23% on £2.2m income last year

Low capital gains rate and US location of funds mean tax bill of £508,000 much less than under top income rate of 45%

Rishi Sunak paid more than half a million pounds in tax in 2023 after making a £1.8m profit on his holding in a US investment fund, a summary of his tax affairs shows.

The prime minister published the document on Friday, showing he paid a tax bill of £508,308 in the financial year 2022-23 on overall earnings and gains of £2.23m.

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Local authority leaders criticise Sunak’s call for ‘restrained’ council tax rises

Prime minister’s comments ‘remarkable’ given government cuts to town hall funding in England, say LGA bosses

Council leaders in England have criticised Rishi Sunak for demanding that local authorities show “restraint” in putting up council tax bills, saying the government is to blame for underfunding.

The prime minister on Friday called for authorities to be “restrained in the council tax rises they put in place”, saying it was “incumbent on local councils to be respectful of the demands on people’s family budgets”.

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Jeremy Hunt suggests tax cuts in budget won’t match last year’s £20bn giveaway – UK politics live

The chancellor said he wanted to manage people’s expectations ahead of the spring budget

The UK needs a government guided by clear purpose, Reeves says.

Labour has set out five missions. But they are all tied to the economic mission – to raise growth.

These are the symptoms of economic decline.

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Chancellor considers further national insurance cut to take heat off Rishi Sunak

Jeremy Hunt targets further reduction in ‘jobs tax’ in March budget

The government is considering handing workers another tax cut with a further reduction in national insurance, amid desperate attempts to move on from a campaign to destabilise Rishi Sunak by the Tory right.

With frustration within the cabinet that the Conservative party has been unable to free itself from internal warring over Sunak’s immigration plans and leadership, the prime minister and his chancellor, Jeremy Hunt, are focusing on the tax cuts that will frame their election pitch.

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Labour to unveil plans for City at forthcoming business conference

Exclusive: more than 500 bosses from finance world will be in attendance at sold-out event in London

Labour will use its sold-out business conference next week to unveil the party’s City policy plans, the Guardian can reveal, as it tries to win over hundreds of UK executives before a general election.

More than 500 bosses from across British finance will gather in London on 1 February for the event, where opposition leaders including Sir Keir Starmer, his shadow chancellor, Rachel Reeves, and the shadow business secretary, Jonathan Reynolds, plan to “showcase Labour’s offer to business”.

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Jeremy Hunt claims Nigel Lawson’s mantle as he teases tax cuts

Hunt draws comparisons with Thatcher’s tax-slashing chancellor as he claims UK is ready for economic boom

Jeremy Hunt has compared himself to former tax-cutting chancellor Nigel Lawson, as he joined Rishi Sunak in teasing further potential cuts in the spring budget.

Writing in the Mail on Sunday, the chancellor drew comparisons with the late Lawson, who was known for slashing personal taxation while serving in the Thatcher government.

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Labour considers non-dom tax plan that would raise £1bn less than initial pledge

Party may allow non-domiciles to live in Britain for four years before ending tax break, it is understood

Labour 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.

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.

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Sunak says he wants to reduce workers’ taxes this year and may cut benefits

PM sets up possibility of income tax coming down in March and says control of welfare is a priority

Rishi Sunak has said he wants to cut taxes for working people further this year, possibly cutting welfare payments to fund it.

The prime minister said on Sunday his priority before the budget in March would be further tax cuts, which he said would entail stricter controls on public spending and benefits.

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Rishi Sunak says his ‘working assumption’ is that general election will take place in second half of 2024 – UK politics live

PM appears to rule out spring election after recent speculation it could be held in May

Starmer says being in opposition is frustrating, and he accuses the Tories of treating it as performance art.

He is now on the passage about his career in public service that was posted earlier. See 9.12am.

If you’ve been breaking your back to keep trading, steering your business through the pandemic, the cost-of-living crisis, the challenge of Brexit and the chaos of Westminster.

If you’ve been serving our country, whether in scrubs or the uniform of your regiment and what you want now is a politics that serves you, then make no mistake - this is your year.

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