Rachel Reeves slams Tories for failing to scrap ‘outrageous’ non-dom status at Labour party conference
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Rachel Reeves, Shadow Chancellor and MP for Leeds West, also claimed the Conservatives had “unleashed a strategy for sleepless nights” rather than a plan for growth, after the Chancellor’s mini-budget sparked market chaos.
Labour has pledged to scrap the “unfair” non-domiciled status, whereby those who declare their permanent home overseas can be legally exempt from paying UK tax on foreign income.
Speaking at Co-operative Party conference in Leeds, Ms Reeves said research suggests axing the financial arrangement would raise £3.2 billion per year.
She said Labour would use these funds to pay for an expansion of the NHS workforce.
In her speech, Ms Reeves also reiterated the party’s pledge to crack down on tax havens and offshore trusts.
On non-dom status, Ms Reeves said Labour intended to challenge the Tories “to do what is right for taxpayers and end this outrageous arcane loophole exploited by the super-rich”.
“Let them defend the indefensible,” she said.
She argued that the choices that the country faces are “increasingly stark”.
“And it’s not just a choice of policies. It is two different visions for our economy and for our society,” she said.
“Failed trickle-down economics with the Tories or a stronger and a fairer economy with Labour.
“The Tories have lost control of our economy. They’ve lost economic credibility. They are a dying government.”
A row over non-doms proved a headache for the Conservatives earlier this year, with the revelation that then-chancellor Rishi Sunak’s wife, Akshata Murty, held the status.
It was estimated that this could have saved her £20 million in taxes on dividends from her shares in Infosys, an Indian IT company founded by her billionaire father.
Following the controversy, Ms Murty declared that she would pay UK taxes on all of her worldwide income.
Amid the furore, then-health secretary Sajid Javid also announced that he had held non-dom status for six years himself while working as an international banker before entering politics.