Chancellor Reeves Reconsiders Tax Plans, Fiscal Rules

Chancellor Rachel Reeves is reconsidering Labour's plans to abolish non-domiciled tax status due to concerns that it may not generate the anticipated revenue and could lead to wealthy individuals leaving the UK. Treasury officials fear that abolishing the status may raise no money, contrary to earlier forecasts that it could yield up to £3.2 billion annually. In parallel, Reeves is contemplating changes to fiscal rules to facilitate increased government borrowing for investments, potentially up to £30 billion, while ensuring public sector net debt falls within five years. She emphasized the importance of accounting for the benefits of public investment alongside its costs. These potential changes come amidst broader efforts to address challenges in public services and economic growth.