'Davos deal' sees Rachel Reeves pledge to relax non-dom tax rules for millionaires

RACHEL Reeves will relax rules for non-domiciled residents in order to help them avoid paying UK taxes – saying she has been “listening to the concerns” of millionaires.

The Chancellor has been attacked as being “out of touch” for offering a “listening ear for millionaires” – while ignoring calls to reinstate the Winter Fuel Payment for pensioners or abandon austere welfare policies.

Speaking at the World Economic Forum in Davos, Switzerland, Reeves told Wall Street Journal editor Emma Tucker that the Government would amend its Finance Bill, adding: “We have been listening to the concerns that have been raised by the non-dom community.”

The change will mean that non-doms will be able to bring money into the UK from abroad without paying significant taxes.

It comes after reports that 10,800 millionaires left the country last year. Reeves also sought to allay concerns that Labour’s changes could affect double-taxation agreements and mean non-doms would have to pay UK inheritance tax.

She said: “That’s not the case: we are not going to be changing those double-taxation conventions.”

Dave Doogan (below), the SNP’s economy spokesperson, said the Chancellor’s “Davos deal for millionaires” was the latest example of “a Labour Party that has lost any sense of itself and what it used to believe in”.

(Image: House of Commons)

He added: “Rachel Reeves says she has been ‘listening to the concerns’ of millionaire non-doms.

“The public will rightly now ask - when will this Labour Chancellor start ‘listening to the concerns’ of the millions of businesses and charities who will be hit by her massive tax hike in National Insurance contributions?

“When will she start ‘listening to the concerns’ of the millions of pensioners who had their winter fuel payments removed by Labour?

“When will she start ‘listening to the concerns’ of the Waspi women who Labour have denied fair compensation?”

Doogan said the Chancellor should be “listening to the concerns” of those who had been “hit by her budget, instead of the millionaire few who have been lobbying her in places like Davos”.