Chancellor could be willing to alter non-dom plans, report suggests

Chancellor Rachel Reeves could be willing to change the plans for Labour’s crackdown on non-doms, according to reports.

The Financial Times reported on Thursday evening that Government officials had said Ms Reeves could change the policy if the numbers are not satisfactory.

A Treasury spokesperson called the report “speculation, not Government policy” and pledged to remove “the outdated non-dom tax regime”.

It comes after a report in the Guardian suggested Treasury officials fear estimates due to be issued by the Office for Budget Responsibility will forecast that the policy will raise no money because of the risk of people who are super-rich leaving the UK.

According to the Guardian report, there are concerns that the OBR forecast would predict the policy could cost the Government money due to non-doms limiting their time in the UK.

An HM Treasury spokesperson said: “These reports are speculation, not Government policy. The independent Office for Budget Responsibility will certify the costings of all measures announced at the Budget in the usual way.

“We are committed to addressing unfairness in the tax system so we can raise the revenue to rebuild our public services.

“That is why we are removing the outdated non-dom tax regime and replacing it with a new internationally competitive residence-based regime focused on attracting the best talent and investment to the UK.”

A costings document in June said Labour planned to raise billions by closing the “non-dom loophole” for wealthy foreigners living in the UK and cracking down on tax avoidance.

Earlier on Thursday, former Bank of England chief economist Andy Haldane told LBC he would be “a bit careful” about not discouraging money for growth.

When asked about the Guardian report, he said: “This is a time where we need more of that private finance to fuel growth and recovery.

“So if it were me, I’d be being a bit careful in not deterring just the flow of finance we need to get growth going.”

In August, Prime Minister Sir Keir Starmer pledged the Government was “cracking down on non-doms”.

In a speech where he warned the upcoming Budget would be “painful”, he said: “Those with the broadest shoulders should bear the heavier burden, and that’s why we’re cracking down on non-doms.”

Published: 26/09/2024 by Radio NewsHub