Category Archives: Tax

Tory plan to abolish stamp duty ‘will benefit London and the wealthiest the most’ – as it happened

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Voting in the Labour deputy leadership election opens today. Lucy Powell, the former Commons leader, is seen as the favourite and, as Jessica Elgot reports, Powell told supporters yesterday that, if she is elected, she will use the post to argue for changes in the way the government is operating. “We can’t sugarcoat the fact that things aren’t going well,” she said.

Powell is no longer a government minister and, if she is elected deputy leader, she will do the job from the backbenches. In an interview on Newsnight last night, Bridget Phillipson, the education secretary standing against Powell, said a Powell victory would be “destabilising” for the party. She said:

[Electing Powell] risks destabilising the party … we best achieve what we need to do together when we have those fierce conversations, including disagreements, behind closed doors.

Members need to understand that there’s a potential challenge around all of that – that if you’re not inside when the big decisions are being made, you’re not at that table, you’re not in those conversations.

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Nigel Farage urged to clarify whether he saved tax on Essex constituency home

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Labour and Lib Dems say Reform leader has questions to answer on who paid for £885,000 property owned by his partner

Labour and the Liberal Democrats have called for Nigel Farage to clarify whether he saved tax on a house in his constituency, after a BBC investigation questioned whether his partner did, as Farage has said, buy the home with her own money.

The Guardian first reported in May that the house in Clacton, which Farage initially said he had bought himself, is in fact wholly owned by Laure Ferrari, his long-term partner.

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Treasury targeting inheritance tax reforms to help plug UK deficit

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Exclusive: Chancellor also looking at tweaks to capital gains tax to try to bridge £40bn-plus spending gap before budget

The Treasury is looking at ways to raise more money from inheritance tax amid growing pressure on the country’s finances ahead of the autumn budget, sources have told the Guardian.

Officials have been tasked with examining whether tightening rules on the gifting of money and assets could be one way of addressing a gap between revenue and spending that is estimated to reach more than £40bn.

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Adani promised Australia billions from its Carmichael mine but it hasn’t paid a cent in tax. How did we get here?

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The coalmine generated millions in revenue in its early days but recorded an operating loss – a pattern that would repeat at scale

It was entirely foreseeable, and has resulted in billions of dollars in forgone revenue for Australia.

But just how did policymakers fail to extract a single cent in company tax from Adani’s Carmichael coalmine, even though it opened during the start of a commodity price boom?

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Frasers Group sales fall amid ‘challenging’ luxury market and retreat from gaming

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Pre-tax profits fall 24% despite rise in Sports Direct sales, driven by closures of House of Fraser and Game stores

A “challenging” luxury market and retreat from gaming have prompted a fall in sales and profits at Mike Ashley’s Frasers.

The group, which is majority owned by the billionaire former Newcastle United owner, said sales fell by 7.4% to £4.7bn and pre-tax profits slid by 24% to £379.5m as it closed some of its House of Fraser department stores and Game video game shops.

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Keir Starmer should be bold and consider a wealth tax, Neil Kinnock says

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Former Labour leader says government needs a better narrative and risks being bogged down by ‘imposed limitations’

Keir Starmer’s government is suffering from a “lack of narrative” about what it is trying to achieve and should be more fiscally bold and consider a tax on wealth, Neil Kinnock has said.

The former Labour leader said too many of the government’s achievements were being overshadowed. A year after a landslide election win, the party is struggling in the polls and has U-turned on policies including cuts to winter fuel payments and welfare.

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No 10 won’t say if fuel payments U-turn will be implemented in time for this winter – UK politics live

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Downing Street unable to say how many more pensioners would receive winter fuel payments or when changes would come in

YouGov has published more details of its polling on the electorate’s relationship with Labour, as covered in the Sky News report mentioned earlier. (See 10.06am.)

It shows that Reform UK supporters are most likely to think that Labour is trying hard to appeal to them – but least likely to say they would respond positively. Only 4% of Reform UK supporters say they would consider voting Labour, the poll says.

I ask her if there will be any changes as demanded by MPs

She says while “we want to make sure we address all of people’s concerns, but stressed: “whatever the fiscal position that the government faces, I think the system as a whole needs to change.”

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No 10 won’t say if fuel payments U-turn will be implemented in time for this winter – UK politics live

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Downing Street unable to say how many more pensioners would receive winter fuel payments or when changes would come in

YouGov has published more details of its polling on the electorate’s relationship with Labour, as covered in the Sky News report mentioned earlier. (See 10.06am.)

It shows that Reform UK supporters are most likely to think that Labour is trying hard to appeal to them – but least likely to say they would respond positively. Only 4% of Reform UK supporters say they would consider voting Labour, the poll says.

I ask her if there will be any changes as demanded by MPs

She says while “we want to make sure we address all of people’s concerns, but stressed: “whatever the fiscal position that the government faces, I think the system as a whole needs to change.”

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Has UK-India trade deal ‘sold out British workers’ as Farage and Badenoch claim?

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Row over exemption of national insurance contributions for Indian short-term workers overshadows deal

A multibillion-pound free trade agreement with India has long been touted as a big Brexit boon.

Cheaper clothes and shoes for British shoppers, a huge market for scotch whisky producers and luxury carmakers, and billions of pounds worth of extra trade are among the benefits of the agreement, which was finalised this week.

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Dutton says Labor’s super plan is a ‘quasi inheritance tax’. What’s going on?

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Many countries impose a form of inheritance tax on deceased estates, but does Albanese’s policy fit the bill?

Peter Dutton has described Labor’s plan to reduce tax breaks on superannuation balances larger than $3m as a “quasi inheritance tax”.

The description was made days out from polling day, as the major parties tore apart their opponent’s policies in a last-ditch effort to win votes.

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EVs to cost more under a Coalition government, after Dutton’s apparent backflip on popular tax break

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Polestar says Dutton’s move shows ‘a complete lack of understanding of the significant cost-of-living, climate and health benefits of EVs’

Electric vehicles would cost more under a Coalition government, after Peter Dutton confirmed he would scrap a popular tax break for EV drivers in an apparent backflip that has caused confusion and anger among clean car advocates.

The initiative, which was introduced by the Albanese government in 2022, has meant if a person buys an EV priced under $91,387 through a novated lease program via their employer (when a lease is paid off through pre-taxed salary deductions) they do not have to pay fringe benefits tax (FBT) – even if the car is only for personal use.

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Wealthiest English private schools spend below 6% on means-tested bursaries, research finds

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Data shows 200 independent schools devote fraction of fee income to support disadvantaged pupils based on family income

England’s wealthiest private schools devote only a fraction of their income towards means-tested bursaries, according to research that undermines claims that adding VAT to school fees would decimate support for poorer pupils.

The Private Education Policy Forum (PEPF), a thinktank campaigning for greater equality and transparency among independent schools, gathered data from more than 200 leading schools and found they spent less than 6% of their total fee income on supporting pupils based on family income.

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Ten things we learned from Anthony Albanese’s speech at the Labor party campaign launch

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The PM addressed a crowd of 500 people in Perth, spruiking new policies on housing and tax deductions, celebrating WA and invoking Donald Trump. Here’s what you may have missed

Labor’s election campaign launch in Perth was headlined by a $10bn housing pledge, a vow to help first home buyers and a new $1,000 “automatic” tax deduction for all workers.

It also featured a former prime minister, gags about rugby league and more than a few digs at Peter Dutton alongside Labor’s claims that he is copying Donald Trump’s political playbook.

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Reeves may have to find further cuts and tax hikes amid economic gloom

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Rising costs and global uncertainty may force chancellor to turn to pensioners and wealthier taxpayers

Ministers may have to target pensioners and wealthier taxpayers at the autumn budget, as senior government figures voiced fears brutal welfare reforms would still not go far enough to tackle rising costs.

The Institute for Fiscal Studies warned the chancellor may be forced to consider a freeze on tax thresholds, hikes to capital gains and potentially pension taxes.

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House of Lords proceedings disrupted by protesters – UK politics live

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Campaigners in gallery shout ‘Lords out, people in’ and drop leaflets into the chamber

Nigel Farage, the Reform UK leader, has defended politicians who get involved in entertainment TV.

In an article for the Daily Telegraph, he hit back at Kemi Badenoch, who used an interview with the paper earlier this week to dismiss Farage as just a reality TV phenomenon.

Having appeal doesn’t mean that people want you running their lives. That’s one of the things that we need to make sure that we remind people.

This isn’t I’m A Celebrity or Strictly Come Dancing. You don’t vote for the person that you’re enjoying watching and then switch off when the show’s over.

Anyway, it’s not as though I’m the first politician to have been prominent in the media. Ronald Reagan combined his early political activities with a film and TV career for 20 years, until the 1960s. When he announced in the 1970s that he wanted to become the US President, everybody said he was a B-Movie actor who stood no chance. These days, American conservatives look back on this two-term leader with a slight sense of awe in terms of his achievements.

And what about Donald Trump? He was a well-known New York property developer from the 1970s onwards but it was his massive success with the reality to show The Apprentice from 2004 that put him in a position where he could win the nomination for the Republican Party.

Kemi Badenoch has a problem. Most members of the public have no opinion of her. Even fewer know what she stands for. I have an idea for her. She could appear on a reality TV show herself. A spell in the I’m a Celebrity… jungle would be perfect. I’ll gladly give her some tips if she wants to sign up for the next series.

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Council tax in Scotland to reach record high with 15% rise in some areas

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Levies on tourists and cruise ships considered by some local authorities in attempt to plug funding gaps

Council tax costs in Scotland will hit record levels next month after local authorities agreed to raise rates by up to 15%, with some planning new levies on tourists and cruise ships.

All of Scotland’s 32 local authorities have announced council tax increases from April of at least 6%, with the majority raising them by about 10%, after years of successive cuts to their grant funding.

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Communities warned to prepare as weather system takes right turn – as it happened

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Why should Australia trust president Donald Trump, given how he’s treated Ukraine’s president at the Oval Office? Richard Marles said the government’s focus was on supporting Ukraine:

That’s where Australia lies. That’s the decision that we have to make. And Ukraine can absolutely rely on Australia’s ongoing support in their defence, and we will work with international partners.

We’ve obviously worked with the United States over the last three years, and we’ll continue to do that, but we’ve worked with the United Kingdom, and we’ll continue to do that as well, and with European partners, and look at the best way in which we can provide support.

We have established a timeline with [the] Ukrainian government about the delivery of those tanks to Ukraine. Now, for operational reasons, won’t go into the detail of that timeline.

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‘Real anger’: Labour can expect hostile reception at farmers’ annual gathering

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UK food producers plan more protests over inheritance tax changes ahead of this week’s NFU conference in London

The suits and black cabs which typically dot the streets around Westminster have been frequently replaced by the wellies, tweed jackets and tractors of aggrieved farmers of late. The next protest in London by the nation’s food producers is expected on Tuesday morning, ahead of the annual get-together of the National Farmers’ Union (NFU).

Farmers have regularly swapped their fields for the city since October, when changes to inheritance tax (IHT) for agricultural businesses were announced by the chancellor, Rachel Reeves, angrily protesting and waving banners.

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‘Wilful acts of bastardry’: former Treasury secretary says young Australian workers ‘robbed’ by tax system

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Ken Henry made comments at a tax summit in Melbourne, arguing fiscal drag is seeing taxes go up while real incomes fall

Recent governments have carried out “wilful acts of bastardry” and created intergenerational inequality and environmental destruction that will leave younger voters worse off, the former Treasury secretary Ken Henry has said, urging tweaks to Australia’s tax system to bridge the growing divide.

Henry, who worked under both the Howard and Rudd governments, used a speech at the Per Capita tax summit in Melbourne on Thursday morning to argue the country’s tax settings since the Howard government have fuelled inequality and left further generations and young workers “to pick up the tab”.

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Poorest UK households pay rising share of income on council tax, study finds

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Resolution Foundation report says failure to reform has ‘slowly recreated the issues that undid the poll tax’

Britain’s poorest households are paying an increasing share of their income on council tax, according to new analysis that likened it to the poll tax that contributed to the downfall of Margaret Thatcher.

The poorest fifth of households paid 4.8% of their income on council tax in England, Wales and Scotland and on domestic rates in Northern Ireland in the 2020-21 financial year, up from 2.9% in 2002-3, according to research by the Resolution Foundation.

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