- At the Labour Party Conference 2023, the Shadow Chancellor Rachel Reeves MP and the Leader of the Opposition Sir Keir Starmer MP, commented on the policies that a Labour Government would implement if elected.
- The Shadow Chancellor stated that, inter alia, Labour would:
- Put forward a new Charter for Budget Responsibility, under which any significant and permanent tax and spending changes would be subject to an independent OBR forecast;
- Remove VAT and business rates exemptions from private schools;
- Increase the stamp duty land tax surcharge on overseas buyers; and
- Extend the windfall tax on energy companies.
- She also stated that Labour would abolish non-domicile tax status. However, at Spring Budget 2024 the Chancellor announced a similar policy. The government will abolish the UK’s system of taxing non-UK domiciled individuals, and introduce a new regime to tax new arrivers to the UK from 6 April 2025. In April 2024, Rachel Reeves commented that the Labour party supports the broad principles of the new arrivers regime as announced by the Conservatives, though Labour would change some aspects of the transitional rules and intend to explore whether new arrivers to the UK should also benefit from a tax exemption on UK investment income.
- At Labour’s Business Conference in February 2024, Rachel Reeves additionally committed to capping the headline rate of corporation tax at its current rate of 25% for the next Parliament and maintaining full expensing and the annual investment allowance. She also commented that Labour will publish a roadmap for business taxation within an incoming Labour government’s first six months in office.
- Timing: the next General Election is due to take place by January 2025, however the Prime Minister may choose to call an early election.
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