What changes can we expect from the new Labour government?
10/07/24
Last Friday, 5th July, following an overnight race against time, we woke up to the news that Labour had won the General Election, ending 14 years of Conservative power, with Keir Starmer set to lead as Prime Minister.
After a busy weekend appointing his cabinet members, including Rachel Reeves as Chancellor of the Exchequer, we can only assume that Starmer’s new government will waste no time in introducing the policies laid out in their manifesto for ‘change’.
Reeves began the week by addressing the economic conditions inherited from the previous government, reminding the nation of Labour’s plans to deliver stability and grow the economy. In this, she outlined the government’s commitment to not increasing the current rates of National Insurance, Income Tax, or VAT. But what changes could we see in the coming months? We are wondering whether we may see changes in the following areas:
- Further tightening of the non-domicile rules than initially outlined by the previous government
- Introducing VAT and business rates for private schools
- Changes to headline Capital Gains Tax, potentially aligning it closer to income tax rates
- Reforming Inheritance Tax (IHT), perhaps adjusting the rate but restricting some of the current reliefs
- Long term announcements on Corporation Tax to provide some stability and encourage business investment
- Changes to business rates to encourage small businesses to grow
In the upcoming months, we can expect to see several roadmaps published for the UK’s spending plans across various industries.
If you would like to discuss how potential changes could impact you, then please do not hesitate to get in touch with your usual mgr contact or Joel Calitchi at joel.calitchi@mgr.co.uk.
