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Scrapping the non-dom tax status for wealthy foreign nationals is “an utter humiliation for this government”, shadow chancellor Rachel Reeves has said.

“The last budget of this parliament – they’ve had 14 years and they use this moment to close a non-dom tax loophole that everyone has been aware of for years,” Ms Reeves told Sky News’ Sunday Morning With Trevor Phillips.

“If they had done this when we first announced it we could have brought in billions of pounds extra to either keep taxes down for working people” or invest in other priorities, she said.

In last Wednesday’s budget, Chancellor Jeremy Hunt committed to cutting the tax status for non-doms – short for non-domiciled individuals, who live in the UK but whose permanent home is abroad.

The tax break allows people with non-dom status to only pay tax on money earned in the UK, meaning their overseas income and wealth are not subject to UK tax for up to 15 years. But the chancellor has cut that to four years, a move expected to raise £2.7bn a year towards tax cuts.

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Asked why she was not praising Mr Hunt for taking an idea she supports, Ms Reeves said: “Because they could have done it years ago and we could have reduced those NHS hospital waiting lists…

“Imagine what good could have been done if the chancellor and prime minister had done this years ago.

“So it is a humiliation that they’re doing it at this late stage. They’ve run out of ideas, they’re quickly running out of road.”

Shadow chancellor Rachel Reeves. Pic: PA
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Pic: PA

Asked if Labour would stick to the government’s spending plans, Ms Reeves said there were “areas where we would do more” and noted she has already announced “a small number of targeted tax increases to provide an immediate injection of cash into public services”.

These include the plan to make private schools pay VAT and business rates, and expanding the oil and gas company windfall tax.

She said Labour has fiscal rules she will enforce with an “iron discipline” which are “slightly different” to what the government has in place.

The aim is to “boost our long-term growth and productivity”, which is “absolutely key and has been the missing ingredient in the government’s economic approach the last 14 years”.

She said our economy “would be £140bn bigger” with a similar approach to other OECD countries.

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Pressed on where else she would raise revenue for her party’s priorities, Ms Reeves said she would go through the budget documents to work out where else money could be raised.

“Those pledges very much stand,” she said. “They are national priorities and they are Labour’s priorities as well, and we will now make sure we identify the funding streams, because everything in our manifesto will be fully funded.”

She repeated her pledge there would be no additional borrowing to pay for day-to-day expenditure.

“I’ve been very clear about the fiscal rules to get debt falling as a share of GDP, to pay for day-to-day expenditure through tax receipts and there won’t be anything in our manifesto that breaks those rules.”

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US sanctions North Korean tech worker crew over crypto thefts

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US sanctions North Korean tech worker crew over crypto thefts

US sanctions North Korean tech worker crew over crypto thefts

TRM Labs said North Korea is moving away from hacks to focus more on deception-based revenue generation, such as planting IT workers in US companies.

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UK and France have ‘shared responsibility’ to tackle illegal migration, Emmanuel Macron says

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UK and France have 'shared responsibility' to tackle illegal migration, Emmanuel Macron says

Emmanuel Macron has said the UK and France have a “shared responsibility” to tackle the “burden” of illegal migration, as he urged co-operation between London and Paris ahead of a crunch summit later this week.

Addressing parliament in the Palace of Westminster on Tuesday, the French president said the UK-France summit would bring “cooperation and tangible results” regarding the small boats crisis in the Channel.

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King Charles III at the State Banquet for President of France Emmanuel Macron. Pic: PA
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King Charles III at the State Banquet for President of France Emmanuel Macron. Pic: PA

Mr Macron – who is the first European leader to make a state visit to the UK since Brexit – told the audience that while migrants’ “hope for a better life elsewhere is legitimate”, “we cannot allow our countries’ rules for taking in people to be flouted and criminal networks to cynically exploit the hopes of so many individuals with so little respect for human life”.

“France and the UK have a shared responsibility to address irregular migration with humanity, solidarity and fairness,” he added.

Looking ahead to the UK-France summit on Thursday, he promised the “best ever cooperation” between France and the UK “to fix today what is a burden for our two countries”.

Sir Keir Starmer will hope to reach a deal with his French counterpart on a “one in, one out” migrant returns deal at the key summit on Thursday.

King Charles also addressed the delegations at a state banquet in Windsor Castle on Tuesday evening, saying the summit would “deepen our alliance and broaden our partnerships still further”.

King Charles speaking at state banquet welcoming Macron.
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King Charles speaking at state banquet welcoming Macron.

Sitting next to President Macron, the monarch said: “Our armed forces will cooperate even more closely across the world, including to support Ukraine as we join together in leading a coalition of the willing in defence of liberty and freedom from oppression. In other words, in defence of our shared values.”

In April, British officials confirmed a pilot scheme was being considered to deport migrants who cross the English Channel in exchange for the UK accepting asylum seekers in France with legitimate claims.

The two countries have engaged in talks about a one-for-one swap, enabling undocumented asylum seekers who have reached the UK by small boat to be returned to France.

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Britain would then receive migrants from France who would have a right to be in the UK, like those who already have family settled here.

The small boats crisis is a pressing issue for the prime minister, given that more than 20,000 migrants crossed the English Channel to the UK in the first six months of this year – a rise of almost 50% on the number crossing in 2024.

France's President Emmanuel Macron speaks at the Palace of Westminster during a state visit to the UK
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President Macron greets Commons Speaker Sir Lindsay Hoyle at his address to parliament in Westminster.

Elsewhere in his speech, the French president addressed Brexit, and said the UK could not “stay on the sidelines” despite its departure from the European Union.

He said European countries had to break away from economic dependence on the US and China.

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“Our two countries are among the oldest sovereign nations in Europe, and sovereignty means a lot to both of us, and everything I referred to was about sovereignty, deciding for ourselves, choosing our technologies, our economy, deciding our diplomacy, and deciding the content we want to share and the ideas we want to share, and the controversies we want to share.

“Even though it is not part of the European Union, the United Kingdom cannot stay on the sidelines because defence and security, competitiveness, democracy – the very core of our identity – are connected across Europe as a continent.”

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Can PM turn diplomatic work with Macron into concrete action on migration?

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Can PM turn diplomatic work with Macron into concrete action on migration?

Emmanuel Macron addressing parliament in the Palace of Westminster’s Royal Gallery was a highly anticipated moment in the long history of our two nations.

That story – the conflict and a historic Anglo-French agreement that ended centuries of feuding, the Entente Cordiale – adorn the walls of this great hall.

Looming over the hundreds of MPs and peers who had gathered in the heat to hear the French president speak, hang two monumental paintings depicting British victories in the Napoleonic wars, while the glass stand in the room commemorates the 408 Lords who lost their lives fighting for Europe in two world wars.

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The French president came to parliament as the first European leader to be honoured with a state visit since Brexit.

It was the first address of a French president to parliament since 2008, and Mr Macron used it to mark what he called a new era in Anglo-Franco relations.

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Sky News’ political correspondent Tamara Cohen was watching Emmanuel Macron’s speech. She highlights the president saying he wants to see tangible results on migration.


Peers and MPs cheered with delight when he confirmed France would loan the Bayeux Tapestry to the UK in the run-up to the anniversary of William the Conqueror’s birthday.

“I have to say, it took properly more years to deliver that project than all the Brexit texts,” he joked as former prime minister Theresa May watched on from the front row

From Brexit to migration, European security, to a two-state solution and the recognition of Palestine, Mr Macron did not shy away from thorny issues, as he turned the page on Brexit tensions woven through Anglo-French relations in recent years, in what one peer described to me as a “very political speech rather than just the usual warm words”.

Macron addressing Parliament
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Emmanuel Macron addresses parliament

He also used this address to praise Sir Keir Starmer, sitting in the audience, for his leadership on security and Ukraine, and his commitment to the international order and alliances forged from the ashes of the Second World War. For that, he received a loud ovation from the gathered parliamentarians.

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The test now for Sir Keir is whether he can turn his deft diplomatic work in recent months with Mr Macron into concrete action to give him a much-needed win on the domestic front, particularly after his torrid week on welfare.

The government hopes that France’s aim for “cooperation and tangible results” at the upcoming political summit as part of this state visit, will give Starmer a much-needed boost.

The PM is attempting to drive-down crossings by negotiating a one-in one-out return treaty with France.

Under this plan, those crossing the Channel illegally will be sent back to France in exchange for Britain taking in an asylum seeker with a family connection in the UK.

But as I understand it, the deal is still in the balance, with some EU countries unhappy about France and the UK agreeing on a bilateral deal.

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