London Daily

Focus on the big picture.

Labour's Tax Crackdown: Boosting HMRC to Fund NHS and School Breakfast Clubs, Raising £5.1bn Annually

Labour plans to fund policies on the NHS and school breakfast clubs by increasing tax collection efforts, promising up to £555m for officials.
This is expected to raise £5.1bn annually.

Rachel Reeves, the shadow chancellor, accused the Conservatives of failing to address tax dodging.

The Conservatives introduced 200 measures to combat tax non-compliance, but the Labour Party cannot yet specify how they will fund their promises without raising taxes.

Labour had previously planned to pay for these pledges by replacing the UK's non-dom tax regime.

The UK government is planning to change tax rules for non-domiciled individuals, who live in the UK but pay taxes in their home country, to fund a cut to National Insurance.

This move has raised questions for the Labour party, which has a self-imposed rule against borrowing for day-to-day spending.

In response, Labour's Shadow Chancellor, Rachel Reeves, has proposed an alternative plan to increase tax collections.

According to Labour, the tax gap between what is owed and what the government collects was £36bn in the 2021/22 financial year.

The Labour party proposes increasing funding to tackle tax evasion and fraud by investing £555m in hiring more tax officers and digitizing the tax office.

This approach is estimated to raise £5.8bn annually by the end of the parliament.

The National Audit Office head suggested the government could save £6bn yearly by addressing tax evasion and avoidance.

Labour aims to provide HMRC with the necessary resources to investigate tax evaders and modernize the tax office.

HMRC has been calculating the tax gap since 2005.

The text discusses the reduction of the gap between the UK's tax revenue and spending, which has fallen from 7.5% in 2005 to 4.8% in 2021/22.

The Labour party supports the proposed replacement of non-dom rules but suggests strengthening it by including foreign assets held in trust within UK inheritance tax and removing a 50% discount in the first year of the new rules.

These changes could bring in £1bn in one year and £2.6bn over the next Parliament.

The Liberal Democrats believe these changes are not enough and have proposed fully-costed plans to fund care for everyone.

It's common for governments to announce plans to increase revenue by reducing tax avoidance or evasion.

The text discusses the UK government's plan to increase corporation tax to help pay for COVID-19 recovery efforts.

However, the author notes that the Office for Budget Responsibility has expressed uncertainty about how much revenue this measure will actually generate and how quickly it can be brought in.
Translation:
Translated by AI
Newsletter

Related Articles

London Daily
0:00
0:00
Close
News roundup
Good day, everyone! We've got some gripping stories for you today, spanning from the Middle East to Europe, and even a touch of Hollywood.
Britain’s Refugee Visa Rules Stranding Children in War Zones
UK Elections Predict ‘Electoral Extinction’ for PM Sunak’s Conservative Party
Italian Activist Ilaria Salis Returns Home After Election to European Parliament
Good morning!
England Faces Serbia in Euro Opener with Defensive Concerns
Dermatologist Warns Against Sunbed Usage
Fake Pro-Reform UK Social Accounts and Their Influence on Elections
UK Man Jailed for Non-Consensual Condom Removal
Reform UK Surpasses Conservatives in Historic Poll
US, Britain, Canada Accuse Russia of Interference in Moldova’s Election
Taylor Swift Fans Create Seismic Activity in Edinburgh
Sunak Aide Under Investigation for Election Bet
Labour Leader Starmer Focuses on Wealth Creation for Upcoming UK Elections
G7 to Use Frozen Russian Assets for $50 Billion Ukraine Aid
Anti-Israel Irish MEP Clare Daly LOST her seat in the EU Election
Johnson & Johnson Settles Talc Safety Claims for $700 Million
EU Urged to Welcome Skilled Russians to Weaken Putin
EU Elections Overview: Far-Right Gains and Major Political Shifts
Israel Rescues Four Hostages from Gaza
Emmanuel Macron Calls for Snap Election
Jordan Bardella: Young Far-Right Leader Poised for Future Political Influence in France
World's Oldest Privately Owned Book Auctioned for $3.8 Million
Animal Rights Activists Deface King Charles' Portrait in Protest
Dutch Military Intel Uncovers Extensive Chinese Cyber Espionage
Turkish Student Arrested for Using AI to Cheat in University Exam
Rise in Dengue and Other Mosquito-Borne Diseases in Europe Due to Climate Change
EU Elections Overview: Far-Right Gains and Major Political Shifts
Far-Right National Rally Dominates France's EU Vote
Macron Calls Snap Legislative Elections After Far-Right Victory
Far-Right Gains Significantly in EU Election
UK Job Market Shows Signs of Recovery
Orban’s Fidesz Party Wins Majority in Hungary’s EU Elections as New Challenger Emerges
Meloni's Far-Right Party Wins European Elections in Italy
Key Insights from the European Union Elections
European Union Elections and Rise of Far-Right Parties
England Loses Over 260,000 Social Rent Homes in a Decade
Campaigners Urge Government to Block Shein's FTSE Listing
First NHS AI-Run Physiotherapy Clinic Launches This Year
British TV Presenter Michael Mosley Found Dead on Greek Island
Ukrainian Forces Claims First Strike on Russia's Su-57 Fighter Jet
Macron Dissolves Parliament and Calls Snap Elections
Russia Adds Yulia Tymoshenko to Wanted List
UK Foreign Secretary David Cameron Tricked by Hoax Caller Posing as Former Ukrainian President
Kate Middleton's Absence from Colonel's Review Due to Chemotherapy
UK Foreign Secretary Deceived by Prank Video Call
Sunak Criticised Over D-Day Exit in BBC Debate
Rishi Sunak Apologizes for Leaving D-Day Commemoration Early
UK Woman Sentenced After Causing Fatal Crash While Sending Selfies
×