UK Politics

Sign up for the View from Westminster email for expert analysis straight to your inboxGet our free View from Westminster emailA minister has been forced to deny plans for a May election as the government faced calls to explain why a top diplomat was kept ‘in the dark’ over the cancellation of a major summit in April.Rishi Sunak had been due to host political and business leaders from 25 different African countries at the gathering in London.But it will not now be held at the end of April, a decision taken so abruptly the event’s official envoy was already on his way to visit the continent when he found out, ministers have admitted.The revelation will add to growing speculation over an early poll.Mr Sunak has previously said he wants to hold it in the second half of the year.And asked on Monday if there was a “sniff” of a chance of a May general election, trade minister Mr Hands told Times Radio: “No.”He was questioned over mounting speculation the PM could call a snap poll to coincide with local elections at the start of May, just weeks after the postponed Africa investment summit was due to have taken place.In answer to questions from shadow attorney general Emily Thornberry, ministers have now admitted the envoy, former British ambassador to Ethiopia, Dr Alastair McPhail, was only informed the summit had been delayed while “en route” to Rwanda to discuss it.They blamed “scheduling issues in the international calendar” for its postponement.But Labour has accused them of showing “blatant disrespect” to allies and called for an explanation.The party says it is prepping for a May election amid fears the Conservatives will try to use the element of surprise to avoid a thumping from voters.Rishi Sunak (Stefan Rousseau/PA)Shadow minister for trade Gareth Thomas said: “Whether or not this summit was postponed with a May election in mind, there has been no proper explanation for the decision, and now we discover that even the official envoy for the event was left in the dark about it.”He added: “But as bad as that is, the biggest issue is not how David Cameron has sidelined his own diplomats, it is how our trade partners throughout Africa have been treated.””Treating countries who should be our friends with such blatant disrespect is not the way to promote mutually beneficial business deals. “In a parliamentary answer, minister Leo Docherty said the “Envoy was informed of the postponement of the Summit on 29 January shortly after the decision was taken, at which point he was already en route to Rwanda.”He added that the decision had been taken “owing to scheduling issues in the international calendar”.The total cost of three-day trip to promote the event was £4,714 visit, the government said.The Foreign Office declined to comment. A No 10 source said the working assumption was still an autumn election. More

Sign up for the View from Westminster email for expert analysis straight to your inboxGet our free View from Westminster emailSpeculation is rife about what chancellor Jeremy Hunt might announce when he sets out the government’s spending plans in the spring Budget.In the run-up, most reporting had focused on whether taxes would be slashed.However, reports revealed on Tuesday the chancellor is expected to slice 2p from the rate of National Insurance instead, after concluding income tax cuts would be too expensive and risk stoking inflation, which remained frozen at 4 per cent in January.We want to know what you’d like to see announced in Jeremy Hunt’s budget.If you were given the reigns to Number 11, what policies would you implement? Would you be keen to see more help introduced for first-time buyers? Or would you rather see enhanced VAT relief on electric vehicle charging brought in?Share your opinion by adding it in the comments and we’ll highlight the most insightful ones as they come in.All you have to do is sign up and register your details – then you can then take part in the discussion. You can also sign up by clicking ‘log in’ on the top right-hand corner of the screen.Make sure you adhere to our community guidelines, which can be found here. For a full guide on how to comment click here.Join the conversation with other Independent readers below or by clicking here. More

Sign up for the View from Westminster email for expert analysis straight to your inboxGet our free View from Westminster emailJeremy Hunt is reportedly considering axing the controversial “non-domiciled” tax status in his spring Budget this week to help fund pre-election tax cuts.The non-dom tax status is for wealthy overseas individuals and scrapping the loophole has been one of Labour’s flagship policies.If scrapped by the chancellor to raise emergency funds for the Budget, it would leave the opposition scrambling for new sources of cash to fund other key pledges. Mr Hunt has not always been in favour of axing the status, however, saying back in 2022: “I would rather wealthy foreigners spent their money in Britain.”The issues around people with non-dom tax status came under the spotlight again last year when The Independent revealed that Rishi Sunak’s wife Akshata Murty dodged millions in UK tax by taking advantage of the loophole.Research from the London School of Economics found that scrapping the special exception would raise the government over £3.2bn a year, something that could help fund other tax cuts. Their forecast predicts that just 0.3 per cent of people with non-dom status would leave the country in this scenario.However, the Institute for Fiscal Studies this week warned the chancellor to “tread carefully” on removing it. The research group pointed out that there are around 37,000 people claiming the non-dom tax exception in the UK, still paying a collective £6bn in UK taxes. Any major change, they argue, could see many of them leave the country – taking this revenue with them.Here, we take a look at everything you need to know about the non-dom status: What is ‘non-dom’ tax status?First introduced in 1799, and refined over the years, the UK’s “non-domiciled” tax regime has come under scrutiny in recent years.A “non-domiciled individual” is a person who lives in the UK but is not settled here permanently. They will only pay UK tax on money made in the country, and can avoid paying it on their foreign income if they opt to claim the “remittance basis”.This allows wealthy individuals living in the UK to elect the lower-tax country as their domicile, making for major savings.There are two ways you can claim this status. Firstly, if you weren’t born in the UK, or your father came from a different country. The only other way is if you are over 16 and choose to leave the UK to live elsewhere permanently.Jeremy Hunt ahead of the 2023 spring Budget If you are a non-dom and choose not to pay UK tax on your overseas earnings, you must pay:£30,000, if you’ve been in the UK for at least seven of the past nine tax years£60,000 if you’ve been here for at least 12 of the past 14 tax yearsYou can no longer claim non-dom status after you have lived in the UK for 15 of the previous 20 years. Non-doms that don’t claim the remittance basis will simply pay UK tax on their foreign income (over £2,000).Several other countries similarly operate a tax system with special rights for non-dom individuals.Other countries with a special “non-dom” tax systemIt’s not just the UKBelgiumCyprusPortugalIrelandItalyMaltaThe NetherlandsSwitzerland How many people with non-dom status live in the UK?In April 2023, there were 68,800 non-doms living in the UK, with an estimated 37,000 claiming the special ‘remittance basis’ tax status.Ms Murty remains a non-domicilied individual as a citizen of India. However, following the revelations of her tax arrangements, Ms Murty opted to begin paying UK tax on all her worldwide income in future and for the 2021/22 financial year.The prime minister’s wife issued a statement at the time, accepting that her tax status was not “compatible” with Mr Sunak’s political role, and that she appreciates the “British sense of fairness”.It was estimated she dodged up to £20m in UK tax over several years on her dividends from Indian IT firm Infosys, founded by her father. Conservative peer Zac Goldsmith Conservative peer Zac Goldsmith held non-dom tax status until becoming an MP in 2009, when he relinquished it under media and political pressure. He inherited the status from his father.Other famous non-doms have included: oligarch and former owner of Chelsea football club Roman Abramovich, media mogul Viscount Rothermere, and AstraZeneca CEO Pascal Soriot. More

Sign up for the View from Westminster email for expert analysis straight to your inboxGet our free View from Westminster emailA Tory minister has appeared to rule out a May general election, suggesting voters will go to the polls this autumn.With Rishi Sunak’s party lagging Labour in the polls by 20 points, Greg Hands said the contest will be “later this year”.The trade minister was asked about mounting speculation the PM could call a snap election in May, to coincide with local elections around the country, but ruled the prospect out.Tory trade minister Greg Hands said the general election will not be in May Asked on Times Radio whether there is “a sniff” of a chance of a May general election, Mr Hands said: “No.”At the same time, Labour’s shadow paymaster general was making a bet with Sky News presenter Kay Burley that the contest would be in May.Jonathan Ashworth said: “After 14 years of the Tories… I think the British people will say it’s time for a change and will want to get rid of the Tories.“And by the way, this election is coming in May. I think it is definitely coming in May… the Conservatives are planning for that.”Mr Ashworth accepted a £10 bet for a children of alcoholics charity and called on Mr Sunak to “name that date”.Mr Sunak has previously said his “working assumption” is that he will call the election in the second half of this year, but has refused to set out a date.But expectations have been raised of a May election ahead of mooted tax cuts in Wednesday’s budget and the potential deportation flights to Rwanda could take off within weeks.Rishi Sunak has refused to say when the general election will be, suggesting it will be at some point in the second half of 2024 No10 has insisted it is committed to getting flights off the ground by the spring, which could combine with a tax giveaway and give the Tories a campaign boost.There are also growing fears Mr Sunak faces a tough set of results at the May local elections, which could destabilise his leadership.And some suggest the government could opt for a May election to limit the damage to the Conservatives, with no evidence the party can expect a turnaround in the polls.Former Tory leader Lord Hague urged the PM to “keep his options open” on the timing of the election, but added that it is “much more likely” to come late this year. Mr Sunak’s deadline to dissolve parliament in time for a 7 May election is 26 March.It comes after a shock survey on Monday revealed the party is on course for one of its worst election defeats in history.It showed for the Conservative Party has plunged to the lowest level since 1978 with just a fifth of British voters now backing Mr Sunak’s party.The Tories were 27 points behind Sir Keir Starmer’s Labour Party, which would spell electoral oblivion for Mr Sunak’s party if replicated at a general election.The Ipsos poll, published on Monday, shows Mr Sunak could hold on to as few as 25 seats – 351 fewer than Boris Johnson won in 2019 – in what would be a historic defeat.It also predicts Sir Keir could secure as many as 537 seats – 340 more than Jeremy Corbyn managed at the last election and equating to a landslide which would eclipse Sir Tony Blair’s 1997 win.The survey showed support for the Tories at just 20 per cent, the lowest since 1978 when Ipsos started tracking the poll. Ipsos is a multinational market research firm and the poll is the latest in its monthly independent Political Monitor.In the latest survey, Labour’s support has dropped to 47 per cent from the 49 per cent it had in January.Meanwhile, the Liberal Democrats were backed by 9 per cent of the electorate, while support for both the Green Party and Reform UK was at 8 per cent – double what it was in January.Ipsos’s previous lowest score for the Conservatives was 22 per cent, recorded by John Major in December 1994 and May 1995, only a few years before Sir Tony’s election win. More