Rachel Reeves tackles the tax gap
What the shadow chancellor says
Shadow Chancellor Rachel Reeves has promised to close the UK’s tax gap – the missing chunk that heavyweights, loophole‑hopping firms and certain non‑doms slip through the system – and turn a £5 bn windfall into public services by the end of this Parliament.
How it’s going to happen
- Stop loopholes, start fairness. Reeves will move to abolish exemptions that let non‑doms dodge inheritance tax, and axe the temporary 50 % discount that the previous government left in place.
- Boost HMRC staff. The shadow chancellor plans to pipe up £555 m annually into new compliance officers – “because the gap is widening to £36 bn in 2021/22, and we can’t just sit on our hands.”
- Train from the ground up. “We’ll bring in extra resources now, then train personnel so there’s a team that can tackle the problem head‑on,” Reeves told the BBC Breakfast audience.
Why it matters
Reeves calls the tax gap “a grave economic inheritance” – “the worst since the Second World War” – and notes that without a solution, future governments might be forced to make tough cuts. “By ensuring non‑doms play their fair share and cracking down on avoidance, we can reclaim over £5 bn a year,” she added, painting a picture of a more balanced budget that protects front‑line public services instead of giving the wealthiest a sweet spot.
Humor and heart
“Why should some of the wealthiest people get a 50 % discount while teachers, plumbers, and doctors walk around paying full price?” Reeves quipped, reminding readers that fairness isn’t a mind‑reading trick but a practical one. She hopes that a fairer system will give everyone a chance to build a better future.
