What's happened
Labour's shadow chancellor, Rachel Reeves, announces plans to raise £5bn annually by cracking down on tax avoidance and closing loopholes in tax laws. This move comes in response to the Conservatives' abolition of the non-domicile regime, prompting wealthy individuals to consider moving overseas.
Why it matters
Labour's initiative to tackle tax avoidance is crucial in ensuring that the wealthy pay their fair share of taxes, funding essential public services like schools and the NHS. By closing loopholes and modernizing HMRC, Labour aims to address the tax gap and improve tax compliance, impacting the lives of millions of people across the country.
What the papers say
The Guardian reports that Labour's plan to crack down on tax dodgers will help revive UK public services, while Sky News highlights the party's commitment to modernizing HMRC and closing tax loopholes. The Independent emphasizes Rachel Reeves' efforts to address tax dodging and fill a financial gap in Labour's spending plans.
How we got here
The plan to crack down on tax avoidance comes in response to the Conservatives' abolition of the non-domicile regime, which allowed wealthy individuals to avoid paying taxes on overseas income. Labour's proposal aims to raise £5bn annually by clamping down on tax dodgers and ensuring tax compliance.
Common question
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Rachel Jane Reeves is a British Labour Party politician serving as Shadow Chancellor of the Duchy of Lancaster and Shadow Minister for the Cabinet Office since 2020. She has been the Member of Parliament for Leeds West since 2010.
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The Labour Party is a centre-left political party in the United Kingdom that has been described as an alliance of social democrats, democratic socialists and trade unionists.
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Jeremy Richard Streynsham Hunt is a British politician serving as Member of Parliament for South West Surrey since 2005. A member of the Conservative Party, he served in the Cabinet from 2010 to 2019, most recently as Foreign Secretary from 2018 to 2019.
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The National Health Service is the publicly funded healthcare system in England, and one of the four National Health Service systems in the United Kingdom.
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The Conservative Party, officially the Conservative and Unionist Party, and also known colloquially as the Tories, Tory Party, or simply the Conservatives, is a political party in the United Kingdom.
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The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom or Britain, is a sovereign country located off the northwestern coast of the European mainland.