UK Politics

Ferrari has reduced the number of cars it sells in the UK after wealthy residents are leaving the country following the scrapping of the non-dom tax status. In a bid to prevent a decline in the residual value of the luxury Italian cars, Ferrari said it began limiting the number of vehicles it exported to the UK six months ago. Benedetto Vigna, the chief executive of the carmaker, said the company had seen a “stabilisation” in sales following the reduction of vehicles allocated to the UK. “Some people are getting out of that country for tax reasons,” he told the Financial Times, but added that “there are many different factors” for a decline in residual values. “Maybe when you sell to the UK, that car cannot be sold somewhere else [because of its right-hand wheel],” he said. Benedetto Vigna, the chief executive of Ferrari, says company has seen a ‘stablisation’ following reduction of vehicles sent to UK More

When voters in Caerphilly in south Wales go to the polls later this month, it will be about far more than one seat in the Senedd, Wales’s devolved parliament.Caerphilly, a postindustrial town just north of Cardiff, has long been considered safe Labour territory. But in recent years, economic upheaval and social change have made once rock-solid seats like these far less predictable.The contest is therefore not just about who wins a single seat, but what kind of Wales will emerge from a period of upheaval. Will it be one clinging to the certainties of its industrial past? Or one looking toward Plaid Cymru and the prospect of Welsh independence as the political voice for such unease? Or, alternatively, will it turn to the populist right?What happens here could indicate whether Labour’s hold on the Welsh valleys is starting to loosen, and whether new political forces are taking root. It’s a local contest with national stakes.Labour remains Wales’s dominant political force, but the past 18 months have been turbulent. Mark Drakeford’s retirement as First Minister was followed by Vaughan Gething’s brief and troubled leadership.Caerphilly Castle is the second largest castle in the UK More

With Labour’s second autumn Budget fast approaching, speculation about further tax rises has grown rife. The chancellor may need to find at least £22bn next month, pre-Budget research from the respected Institute for Fiscal Studies (IFS) found, as rising borrowing costs and weak growth forecasts drastically reduce her room for manoeuvre.Making matters more tricky for the Treasury is Labour’s continued commitment not to raise taxes on “working people” – meaning no increase to the headline rates of income tax, VAT or national insurance contributions.With these three largest bases of tax revenue closed off, the chancellor has fewer places to look to raise revenue, making it more likely she will pick from a diverse range of taxation tweaks.Changes to how property and capital gains are taxed have now been forecast by many economists, but some have also predicted that changes to pension policy could make an appearance.Pre-Budget research has found that the chancellor may need to find at least £22bn next month More

With Labour’s second autumn Budget fast approaching, speculation about further tax rises has grown rife. The chancellor may need to find at least £22bn next month, pre-Budget research from the respected Institute for Fiscal Studies (IFS) found, as rising borrowing costs and weak growth forecasts drastically reduce her room for manoeuvre.Making matters more tricky for the Treasury is Labour’s continued commitment not to raise taxes on “working people” – meaning no increase to the headline rates of income tax, VAT or national insurance contributions.With these three largest bases of tax revenue closed off, the chancellor has fewer places to look to raise revenue, making it more likely she will pick from a diverse range of taxation tweaks.Changes to how property and capital gains are taxed have now been forecast by many economists, but some have also predicted that changes to pension policy could make an appearance.Pre-Budget research has found that the chancellor may need to find at least £22bn next month More

Sir Keir Starmer’s government has postponed a decision on whether to grant China permission for a new London “super embassy”.The planning decision for the proposed site near the Tower of London was called so ministers would make the final decision and was expected on 21 October.But the deadline for the housing and planning secretary, Steve Reed, to make the decision has been pushed back to 10 December, amid mounting pressure on the prime minister over his approach to China. Keir Starmer is already under pressure over his approach to China More

The Green Party is now neck and neck with Labour, a new poll has shown, as the party climbs in the polls following the election of Zack Polanski – but both are lagging behind Reform UK. A new poll, conducted by FindOutNow, put Nigel Farage’s party on 32 points, a fall of two points since this time last month. The Conservatives are on 16 points, having seen no change since last month. Following closely behind are both Labour and the Greens, with Labour having seen its approval rating fall by one point, while the Greens have surged by three points in Mr Polanski’s first month as the party’s leader. Leader Zack Polanski told the Green Party conference: ‘The alarm bells of authoritarianism are ringing’ More

The head of MI5 has said “Chinese state actors” present a national security threat to the UK “every day” and he admitted he was frustrated by the collapse of the case against two alleged Westminster spies. Sir Ken McCallum set out how the Security Service carried out an operation against a threat from China within the last week amid growing questions around the failure to prosecute.In a speech at MI5’s London headquarters, the service’s director general said that the UK needed to “defend itself resolutely” against China while also being able to “seize the opportunities” having a relationship with Beijing brings.“The UK-China relationship is, by its nature, complex, but MI5’s role is not: we detect and deal, robustly, with activity threatening national security,” Sir Ken said.He highlighted attempts by China to carry out “cyber espionage”, “clandestine technology transfer”, efforts to “interfere covertly in UK public life” and the “harassment and intimidation of opponents” including pro-democracy activists.“When it comes to China, the UK needs to defend itself resolutely against threats and seize the opportunities that demonstrably serve our nation,” he said.It was a choice for ministers to decide where the balance lies, he said, “informed by expert security advice”.Asked if he was frustrated by the collapse of the case against Christopher Cash and Christopher Berry, he said: “Of course I am frustrated when opportunities to prosecute national security-threatening activity are not followed through, for whatever reason.”Sir Ken’s comments came after it emerged the government’s deputy national security adviser had repeatedly described the “threat” posed by China in witness statements, published on Wednesday night, amid the extraordinary row over the collapse of the case.A key allegation against the government was that it refused in its evidence to the CPS to describe Beijing as a threat to Britain’s national security. MI5 chief Ken McCallum says he is ‘frustrated’ by the case collapsing More

Stamp duty reform is rumoured to be under consideration by chancellor Rachel Reeves ahead of the Autumn Budget.Reports suggest the Treasury is considering a new tax on the sale of homes worth more than £500,000 as a step towards a radical overhaul of stamp duty and council tax.Meanwhile, Tory leader Kemi Badenoch really set the cat among the pigeons by pledging to scrap the tax entirely during her party’s conference last week. But Independent readers are divided on whether the tax should be axed, with some arguing abolition is “fantasy economics” that would only drive up prices. “When stamp duty was cut during Covid, the spike was so huge it made it even harder for first-time buyers,” one said, while another warned that any savings would just be added to deposits and fuel a crash. Several noted it would “appeal to the very well off” but do “absolutely nothing” for renters or those already priced out of the housing market.Alternatives being floated included new exemptions, higher thresholds, rebates to “encourage downsizing” or replacing it with a fairer levy such as a mansion tax.Overall, there was a sense that all options carried risks – from taking money out of the economy to pushing house prices even higher by fuelling demand.Here’s what you had to say:We need those with financial power to bear their shareIf the abolition of stamp duty is part of a package to properly tax property, then that is good, but I suspect this is merely a headline grabber with no substance. Get a free fractional share worth up to £100.Capital at risk.Terms and conditions apply.Go to websiteADVERTISEMENTGet a free fractional share worth up to £100.Capital at risk.Terms and conditions apply.Go to websiteADVERTISEMENTSure, we all hate taxes and love the benefit of the NHS, roads, dustbin collection, etc. Unfortunately, we need both, and we also need those with the assets and financial power to bear their share and not leave it just to wage earners to shoulder the burden. The UK is a rich nation, it’s just that the distribution of those riches is disproportionately spread, and that situation is worsening at pace.SorrySurreyAppealing to the well-offAbolishing stamp duty is designed to appeal to the very well-off, who are likely to be seeing a big hike in stamp duty on property above £500k in value.It would do ABSOLUTELY NOTHING to help people struggling to get on the property ladder and would also hit the private rented market, as house prices would surge and greedy landlords looking to expand their property portfolios would jack up rents to cover their increased borrowing.The Greens undoubtedly won the Conference season with their audacious but BRILLIANT idea to extend right to buy to the private rented market and give tenants an increasing discount and first refusal when a landlord puts a rental property on the market.If tenants don’t wish to or are unable to buy, then second in line are local authorities, who could progressively rebuild their social housing stock and alleviate their huge housing waiting lists.CanPeopleReallyBeThisStupidFantasy economicsThere was some speculation that Reeves was considering reform of stamp duty or replacement by something else well ahead of the Tory conference, so I think the ideas thief in this case is probably Kemi Badenoch. However, abolition without creating another tax to replace it seems like fantasy economics and a quick way to fuel house price inflation. Badenoch’s announcement sounded more akin to the unfunded Tory National Insurance Contributions cut before the last election.Tanaquil2Stamp duty’s dual purposeStamp duty seems to have two purposes: a way to raise taxes – though all taxes are taxes on income, so it is disguised income tax – and a way to limit house prices (rises) by taking those taxes out of the housing market. The latter is necessary because the housing shortage pushes up house prices, only later to collapse when rates are raised. Removing stamp duty without building more homes is asking for trouble and will not help anyone. It will just mean that the money that would have paid stamp duty will now be added to funds available for deposits and so increase house prices… ready for a crash.much0adoEncourage downsizing insteadIf stamp duty is stopping homeowners downsizing, preventing family homes coming to market and leaving people in properties that are too big for them, all that needs to be done is tweak the tax to encourage downsizing. (Downsizing being moving to a lower square metre, fewer bedroom property, not moving from a high-value housing area to a cheaper area.) Maybe offer a percentage rebate linked to the difference in selling higher-priced property to smaller property purchase price?PedrobearWhat are the benefits of stopping it?When stamp duty was temporarily cut during COVID, the house price spike was so huge it made it even harder for first-time buyers to get on the market.I’m not sure what the amazing benefits of stopping it are.Naa27House price inflation riskPast stamp duty holidays led to house prices rising, meaning buyers paid much the same, were less likely to be able to get a mortgage, and had to have a larger deposit. Perhaps a more limited change to encourage downsizing, especially by the elderly.Alexander Boris de Pfeffel JohnsonIncreasing supply is the solutionReducing or abolishing stamp duty will just push up prices. The only way to make property more affordable is to increase supply, particularly of social housing.BeigeDaveMeaningless nonsenseMost people realise that scrapping stamp duty is fantasy economics. As such, why should Reeves be forced to respond? The Tories have no fiscal credibility, about the same as Farage, so any proposal Badenoch makes now (being so far out from an election) is nothing but childish politicking. I suspect Reeves will ignore it entirely because it’s just meaningless nonsense from a politician nobody takes seriously.TabbersSome of the comments have been edited for this article for brevity and clarity.Want to share your views? Simply register your details below. Once registered, you can comment on the day’s top stories for a chance to be featured. Alternatively, click ‘log in’ or ‘register’ in the top right corner to sign in or sign up.Make sure you adhere to our community guidelines, which can be found here. For a full guide on how to comment click here. More