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Washington Bureau Chief
Sir Keir Stamer and Rachel Reeves could water down their planned raid on nom-doms amid fears the move would fail to raise any money, according to reports.
The chancellor had hoped to raise about £1bn a year by cracking down on the tax perk available to wealthy UK residents.
But government officials said Ms Reeves could overhaul the plan ahead of her 30 October Budget if the numbers did not add up, the Financial Times reported.
A government official told the newspaper: “We will be pragmatic, not ideological. We won’t press on regardless, but we are not going to abandon this completely.”
A Treasury spokesperson called the report “speculation” and pledged to remove “the outdated non-dom tax regime”.
It comes as Labour MP Emily Thornberry said the government should not “pull our punches” if they disagree with the American president.
Sir Keir met Republican nominee for US president Donald Trump for the first time as the two sat down for a two-hour dinner meeting in New York.
What to expect from Tory conference
The 2024 Conservative Party Conference will be a drastically different affair from last year’s gathering in Manchester, when Rishi Sunak’s government was in its dying days.
Back then, ministers announced a slew of eye-catching policies that would reshape the future of the country in a desperate last few roles of the dice – Alex Chalk promising to offshore prisoners, Jeremy Hunt planning to slash the number of civil servants and Rishi Sunak scrapping HS2.
This year, Mr Sunak is a lame duck Tory leader and all eyes will be far from the diminished former prime minister. Instead it will be a four-day battle for the future leadership of the party, with the four remaining contenders thrashing it out to try to win over Tory members.
James Cleverly, Kemi Badenoch, Robert Jenrick and Tom Tugendhat will be put to the test in a series of hustings and speeches, as well as taking part in intense lobbying and networking behind the scenes in Birmingham with MPs and the party rank and file.
On offer elsewhere will be former Tory MPs, ousted by the public in July’s general election, setting out where they think the party went wrong and what it needs to do next.
High profile names expected to appear are ex-PM Liz Truss, former business secretary Jacob Rees-Mogg and incoming Spectator Editor Michael Gove.
The Independent will be bringing the latest updates and analysis from the conference.
What is non-dom tax status and is Labour still going to change it?
My colleague Albert Toth explains:
Government responds to increase in pension credit claims
A Government spokesperson said: “We are committed to supporting pensioners, with millions set to see their state pension rise by £1,700 this parliament through our commitment to the triple lock.
“Given the dire state of the public finances we have inherited, it’s right we target support to those who need it most.
“Over a million pensioners will still receive the winter fuel payment, and our drive to boost pension credit take-up has already seen a 152% increase in claims.
“Many others will also benefit from the £150 warm home discount to help with energy bills over winter while our extension of the household support fund will help with the cost of food, heating and bills.”
Independent readers say Keir Starmer needs ‘time and space to clean out the Tories’ from government
Your Labour Party conference questions answered by John Rentoul as Keir Starmer pledges to ‘face the storm’
Our chief political commentator John Rentoul has been responding to readers questions following a significant week for Labour, as they held their first conference in government in over a decade.
Here are six questions from Independent readers – and his answers from the “Ask Me Anything” event.
Read below:
Who is Russell Findlay? The new leader of the Scottish Conservatives
Russell Findlay has billed himself as someone who is “not a career politician”.
For decades, Mr Findlay was an investigative reporter in Scotland, covering organised crime and justice for the likes of STV and the Scottish Sun.
It was his work investigating some of the country’s biggest criminals that led to him being attacked with acid at his home, narrowly avoiding serious injury.
Mr Findlay went on to become – to the surprise of many colleagues – the head of communications for the Scottish Conservatives in 2020, and later announced his intention to run for Holyrood.
Topping the Tories’ West Scotland list, he was elected in 2021 – after coming third in the Paisley constituency – and quickly rose to become the party’s justice spokesman.
Throughout his four years at Holyrood, the former reporter has become a fierce critic of the Scottish Government, particularly around the controversial gender reforms blocked by the UK government early last year.
He was also seen by some as the continuity candidate in the Tory leadership race, with reports suggesting his predecessor Douglas Ross wanted him to take over the top job last year.
Mr Findlay will now be tasked with bringing together a party which has been struggling in recent months.
Full report: Russell Findlay elected as leader of the Scottish Conservatives following bitter contest
Read the full report from my colleague Alex Croft below:
Badenoch doubles down on claim she became working class after working in McDonald’s
Kemi Badenoch has doubled down on her claim that she “became working class” when she got a job at McDonald’s.
The Tory leadership hopeful said she came to the UK “with no money, no friends, no parents”.
She told LBC at that point in her life she was working class as she “had to work to eat”.
“I grew up in a middle class family but coming here I became working class – my dad gave me his last £100, he said ‘you know this is all we have’ because all our money was gone and this is one of the things that people don’t understand,” Ms Badenoch said.
Watch her original comments below:
Pension credit claims hit almost 75,000 since winter fuel payment slimdown
Pension credit claims have hit almost 75,000 amid Government efforts to boost benefits take-up.
Department for Work and Pensions figures released on Friday showed the Government received around 74,400 pension credit claims in the eight weeks since 29 July, when Chancellor Rachel Reeves announced means testing for the winter fuel payment.
This is up from 29,500 claims in the eight weeks before the announcement.
But in the seven days beginning on 16 September, the department received 11,800 claims, down from 13,400 the week before.
The vast majority (92 per cent) of claims made in the week beginning 16 September were made online.
Work and Pensions Secretary Liz Kendall has previously urged pensioners to check if they are eligible for the benefit, which would unlock winter fuel payments of up to £300.
Unite union says it welcomes government move to borrow to invest in UK infrastructure
Unite, the UK’s biggest union, has said it welcomes reports that the treasury is set to change its fiscal rules in order to allow the government to borrow.
The change is set to be announced in next month’s budget.
Unite general secretary Sharon Graham said: “It seems that the government has listened and will now reform its fiscal rules to allow borrowing to invest. This is a move we have been calling on Labour to make for a long time.
“If this government is going to achieve its aim of making the UK a fairer society that delivers for workers and their communities then it needs make serious investment in infrastructure and new job creating industries.”
