Labour has appointed an expert panel to help it “modernise” His Majesty’s Revenue and Customs (HMRC) if it wins the next election, with the shadow chancellor pledging to stop people being “left hanging on the phone”.
Speaking to Sky News, Rachel Reeves said the panel would advise her on how to improve tax compliance and “bring in this additional money” to the government’s coffers, as well as updating the technology behind the service.
And she said the group would make recommendations on “how we can modernise the HMRC and make it a better experience for people phoning up… who are often left hanging on the phone because there’s no one answering the calls”.
The announcement comes just weeks after a U-turn from HMRC over its plans to shut its helplines for half of the year, following an outcry from the public and politicians.
It also comes as Labour revealed how it would fill the gaps in its spending plans after the Conservatives stole two of their revenue-raising policies – the scrapping of the non-dom tax status and an extension of the windfall tax on oil and gas firms – to pay for a cut in national insurance.
Ms Reeves said the party would raise £5bn by the end of the next parliament to fund breakfast clubs for primary school children and additional appointments in the NHS by clamping down on tax avoidance and closing “loopholes” in the government’s own non-dom pledges.
Put to her that £5bn was a small fraction of public spending overall, the shadow chancellor insisted it was not “a drop in the ocean”, telling Sky News’ Tamara Cohen: “I think that will make a big difference to the lives of hundreds of thousands of people across our country and that is the difference that a Labour government will bring.”
She added: “[The] Conservative government is still not willing to properly clampdown on tax avoidance or to ensure that our non-doms are paying their fair share.
“It’s [a] Labour government that is willing to make those tough decisions and put that money where it’s needed into our frontline public services.”
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1:00
Budget 2024: What was announced?
Ms Reeves warned there would be “constraints in what an incoming Labour government would do”, blaming the Tories for playing “fast and loose with the public finances”.
But she insisted everything in the party’s manifesto would be “fully costed and fully funded”, adding: “People can have the certainty and the security of an economy well-run, after the chaos they’ve seen these last few years.”
Asked if any tax cuts would be on the cards with her in the Treasury, Ms Reeves said: “I want the tax burden on ordinary working people to be lower, but I won’t make any promises that I can’t say how I will keep.”
But she did reiterate Labour’s commitment to the triple lock on pensions, and hinted an emergency budget could come quickly if her party gets the keys to Number 10 and 11.
Ms Reeves confirmed her first budget would include measures to close non-dom loopholes and the windfall tax extension, and Sky News understands it will also include its policy of imposing VAT on private school fees.
“Of course… we will have to bring forward a budget,” she said. “There will also be a need for a spending review.
“But we’ll take one thing at a time. We need to win the election and then we will be able to put into practice the policies.”
Ms Rayner is facing accusations she avoided capital gains tax after selling her property in Stockport in 2015, and falsely registering to vote there while living at her then husband’s house nearby – claims she has denied.
Image: Labour’s deputy leader Angela Rayner. Pic: PA
Asked if she had seen the tax advice given to Ms Rayner, the shadow chancellor said: “No, because I haven’t seen the tax returns or the tax or legal advice of any of my colleagues, and I wouldn’t treat Angela Rayner different to other colleagues.
“But she has taken that advice as she is confident, and I have every faith and trust in my friend and colleague Angela Rayner.”
Sir Keir Starmer and Rachel Reeves have hinted at tax rises to come when the chancellor delivers the budget later this month.
In a Downing Street speech this morning, Ms Reeves will address “speculation” that an increase in income tax will be announced during the highly-anticipated statement on 26 November.
Sky News political editor Beth Rigbysaid it was “highly unusual” for the chancellor to make such a speech, but the Treasury believes she must “try to prepare the ground and make the argument for another big tax-raising budget”.
“I will make the choices necessary to deliver strong foundations for our economy – for this year, and years to come,” Ms Reeves will say.
Last night, Sir Keir gave Labour MPs a taste of what’s to come by warning of the need for “tough but fair” decisions.
Speaking at a party meeting in Westminster, he said the budget “takes place against a difficult economic backdrop”.
“It’s becoming clearer the long-term impact of Tory austerity, their botched Brexit deal and the pandemic on Britain’s productivity is worse than even we feared,” the prime minister said.
“Faced with that, we will make the tough but fair decisions to renew our country and build it for the long term.”
Starmer and Reeves know how hard this is going to be
I don’t need to tell you how difficult and contested this is going to be.
Only a year ago, the chancellor unveiled the biggest tax-raising budget since 1993 and said it was a “once in a parliament event”.
MPs will be fearing a massive backlash should manifesto promises on not raising income tax (and VAT and national insurance) for working people be broken.
Government figures know how hard it’s going to be but argue the chancellor has to level with the public about the hard choices ahead and what is driving her decision-making.
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9:49
Will Labour raise taxes?
The PM and chancellor’s warnings come after reports suggested the Office for Budget Responsibility is expected to downgrade its productivity growth forecast for the UK by about 0.3 percentage points.
That would leave Ms Reeves with a larger than expected fiscal black hole to fill, possibly up to £30bn.
The thinktank, which used to be headed by Torsten Bell, a Labour MP who is now a key aide to Ms Reeves and a pensions minister, said the move would raise vital cash while protecting working people.
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27:55
A promise-breaking budget?
Reeves to prioritise NHS and cost of living
Giving a further flavour of what to expect, Ms Reeves will this morning vow to make “important choices that will shape our economy for years to come”.
“It is important that people understand the circumstances we are facing, the principles guiding my choices – and why I believe they will be the right choices for the country,” she will add.
Ms Reeves will say her priorities are cutting national debt, easing the cost of living and protecting the NHS.
“It will be a budget led by this government’s values,” she’s set to say.
“Of fairness and opportunity and focused squarely on the priorities of the British people: protecting our NHS, reducing our national debt and improving the cost of living.”
Strangulation pornography will be banned following a review which found such images have helped to establish it as a sexual norm.
The possession and publication of images depicting strangulation and suffocation will be criminalised under the Crime and Policing Bill, which is currently making its way through parliament.
Non-fatal strangulation is already an offence in its own right, but it is not currently illegal to show it online.
Conservative peer Baroness Bertin warned earlier this year that there has been a “total absence of government scrutiny” of the pornography industry.
Image: Baroness Gabby Bertin carried out a review of the online pornography industry
Her independent review, published in February, referred to worrying anecdotal evidence from teachers about students asking how to choke girls during sex.
People acting out choking in their sex lives “may face devastating consequences”, she said in the review.
More from Politics
On Monday, the government confirmed it was putting forward amendments to the Crime and Policing Bill, which is due to come back before peers in the House of Lords for further scrutiny next week.
As well as making strangulation or suffocation in pornography illegal, duties will be placed on online platforms to stop the spread of such images, the Ministry of Justice (MoJ) said.
Another amendment will extend the time limit for victims of intimate image abuse, which can include so-called “revenge porn”, to come forward to report such crimes.
Currently, victims have six months to do so, but this will be extended to three years.
Victims minister Alex Davies-Jones said the government “will not stand by while women are violated online and victimised by violent pornography which is allowed to normalise harm”.
She added: “We are sending a strong message that dangerous and sexist behaviour will not be tolerated.”
Of strangulation pornography, Technology Secretary Liz Kendall said: “Viewing and sharing this kind of material online is not only deeply distressing, it is vile and dangerous. Those who post or promote such content are contributing to a culture of violence and abuse that has no place in our society.
“We’re also holding tech companies to account and making sure they stop this content before it can spread. We are determined to make sure women and girls can go online without fear of violence or exploitation.”
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3:17
From June: ‘He was going to kill me’
The government said if the amendments were accepted, possession or publication of strangulation or suffocation in pornography would become a priority offence under the Online Safety Act.
Technology firms would be legally required to take steps to stop such violent content reaching internet users, rather than simply waiting for it to be reported.
The government suggested this could be done through moderation tools, stricter content policies or automated systems being used to detect and hide images.
The British Board of Film Classification (BBFC) welcomed the planned changes, but said they must “mark the beginning of broader reform to ensure parity between online and offline content standards”.
Its chief executive David Austin said: “Harmful depictions of non-consensual, violent and abusive activity continue to be readily accessible to UK users.”
The BBFC said it stands ready to take on “the formal role of auditing online pornography”, which would be “a natural extension of the role we have carried out offline for decades”.
Bernie Ryan, chief executive of the Institute For Addressing Strangulation, welcomed the proposed ban, saying the “serious risks posed by unregulated online content, especially to children and young people” must be recognised.
She added: “Strangulation is a serious form of violence, often used in domestic abuse to control, silence or terrify.
“When it’s portrayed in pornography, particularly without context, it can send confusing and harmful messages to young people about what is normal or acceptable in intimate relationships. Our research shows there is no safe way to strangle.”