Labour’s landmark election victory

Jul 5, 2024

Labour has secured a historic landslide victory in the general election, with Sir Keir Starmer's Government set to introduce several new tax measures. The party, running on a platform promising change, achieved its largest-ever majority, allowing it to implement its policies, including Rachel Reeves becoming the first female Chancellor. Her predecessor, Jeremy Hunt, narrowly retained his seat with an 891-vote majority.

Labour's campaign pledged not to raise National Insurance, income tax, or VAT, yet it proposed significant tax reforms. One notable policy is imposing a standard 20% VAT rate on private schools. Additionally, Labour plans to replace non-dom status with a "modern scheme for people genuinely in the country for a short period". This includes ending offshore trusts to avoid inheritance tax (IHT).

Addressing tax avoidance is a key focus of Labour's manifesto. The party aims to modernise HMRC and reform laws to combat tax evasion. In recent years, HMRC has faced heavy criticism for long waiting times and poor service standards, highlighting the urgent need for investment and improvement.

Labour now has the opportunity to implement its proposed changes, potentially marking a significant shift in British politics.

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