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Sir Keir Starmer has said he has no doubt the government will get flights off the ground to Rwanda but Labour would “cancel the scheme straight away” if they win the next general election.

The Labour leader, announcing his party’s policy on illegal immigration in Dover, said the government’s flagship policy of sending asylum seekers to Rwanda will not work.

“They will get flights off the ground, I don’t doubt that but I also don’t doubt it will not work,” he said.

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When asked by Sky News political editor Beth Rigby if that means he would stop any deportation flights to Rwanda on day one of a Labour government, he said: “We will scrap the Rwanda scheme.

“I said that to you when we last met last week, the time before last and you know, that means ending the scheme.

“Absolutely. Flights and all.”

He added: “We will cancel the scheme – of course that means we won’t operate the scheme at all, it’s a gimmick, I won’t flog a dead horse.

“We’re going to get rid of the policy straight away.”

Labour later clarified the party would not stop any flights already planned but would not schedule any further.

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‘Small boat crossings is one of the greatest challenges we face’

The government’s Rwanda scheme, aimed at deterring asylum seekers arriving in the UK in boats over the Channel, has been stalled by legal arguments but last month became law. However, no flights have yet departed.

The scheme means any asylum seeker entering the UK illegally from a safe country such as France could be sent to Rwanda where their asylum claims would be processed. They would not be allowed to apply to return to the UK.

As Sir Keir announced Labour’s plans to stop small boats coming across to the UK, Sky News witnessed a Border Force boat with about 70 migrants, including at least one child, disembarking in Dover after being picked up in the Channel.

In the speech in Dover alongside new Labour MP Natalie Elphicke, Sir Keir insisted “our asylum system must be rebuilt”.

As part of Labour’s plan, he announced:

• A new Border Security Command, funded by scrapping the Rwanda scheme, with “hundreds of specialist investigators” from the NCA, Border Force, CPS, MI5 and Immigration Enforcement

• Hopes for a new partnership with Europol and new intelligence-sharing networks

• New counter-terrorism powers to allow officers to conduct stop and searches at the border, close bank accounts, trace movements and shut off internet access of people smugglers

• A rules-based asylum system with fast-track reforms, an enforcement unit and a returns agreement with the EU.

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Will Labour’s new plan woo voters?

By Darren McCaffrey, political correspondent

Given the impressive GDP figures released this morning, Labour needed a counter narrative to Conserative crowing.

And so it was to Dover and migration for Sir Keir Starmer to put some flesh on the bones of what a Labour government would do to tackle the small boats crisis.

More money, hundreds of more specialist investigators and the involvement of counter-terrorism are all part of the plan – funded by savings from abandoning the Tories’ Rwanda scheme.

It’s fascinating that Starmer now feels confident enough, not only talking about illegal migration (not traditional Labour territory) but taking the government head-on, on an issue that he feels is up for grabs.

It demonstrates Starmer’s strength inside Labour but also the Conservatives’ perceived weakness on illegal migration.

The Rwanda scheme though, is in principle popular with lots of the public, so if Labour is to abandon it, with this frankly less eye-catching alternative announced today – it leaves one big question – will their plan cut it with voters?

The Labour leader said: “We will restore serious government to our borders, tackle this problem at source and replace the Rwanda policy permanently.”

Turning a blind eye to people smuggling was “not a progressive or compassionate position”, Sir Keir said.

He said “our asylum system must be rebuilt and our borders must be secured”, and accused the Tories of being driven from a serious party of government “onto the rocks of their own delusion” in their pursuit of “gesture politics” over immigration.

“Our rules-based system should align with global rules that protect individual human rights,” Sir Keir added.

“That is in our interests and the right thing to do.”

Pic: PA
Labour Party leader Sir Keir Starmer, sits with new Labour MP Natalie Elphicke, during a visit to Dover, Kent, to set out his party's plans to tackle the small boats crisis if it wins the general election, with a pledge to end the Conservative party's 'talk tough, do nothing culture' on small boats crossing the English Channel. Picture date: Friday May 10, 2024.
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Sir Keir Starmer with new Labour MP Natalie Elphicke. Pic: PA

Sir Keir insisted new Labour MP Ms Elphicke’s defection from the Tories on Wednesday reflected the mood of the country as Rishi Sunak is “clinging on” to power.

Asked if he was concerned about the backlash from within the Labour Party to Ms Elphicke’s defection, he said: “This is a very important and significant crossing of the floor for reasons Natalie set out.

“I think anyone reading the words she set out this morning would be persuaded this is a very significant thing, you’ve got a Tory party that is losing votes, losing MPs, losing councillors, losing mayors across the country.”

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Migrant pays to return to France

Reacting to Sir Keir’s announcement, Home Secretary James Cleverly said: “Labour have no plan to stop the boats.

“Labour have an illegal immigration amnesty, Labour blocked of the deportation of violent sexual offenders and Labour voted over 130 times against tougher legislation to stop the boats. They will create a haven for criminal gangs, not stop them.

“Even Labour MPs are saying Labour can’t be trusted to stop the boats which shows you nothing will change.

“If people can apply for asylum from outside the UK then unlimited claims can be made, many of which will have to be accepted under the law and even then, many of those declined will then get on a small boat anyway.”

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US CLARITY bill could allow Tesla and Meta to evade SEC rules — Senator Warren

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US CLARITY bill could allow Tesla and Meta to evade SEC rules — Senator Warren

US CLARITY bill could allow Tesla and Meta to evade SEC rules — Senator Warren

The legislation to establish crypto market structure is one of three bills the US House of Representatives is expected to consider starting next week.

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What is a wealth tax, how would it work in the UK and where else has one?

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What is a wealth tax, how would it work in the UK and where else has one?

The idea of a wealth tax has raised its head – yet again – as the government attempts to balance its books.

Downing Street refused to rule out a wealth tax after former Labour leader Lord Kinnock told Sky News he thinks the government should introduce one.

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Lord Kinnock calls for ‘wealth tax’

Sir Keir Starmer’s spokesman said: “The prime minister has repeatedly said those with the broadest shoulders should carry the largest burden.”

While there has never been a wealth tax in the UK, the notion was raised under Rishi Sunak after the COVID years – and rejected – and both Harold Wilson’s and James Callaghan’s Labour governments in the 1970s seriously considered implementing one.

Sky News looks at what a wealth tax is, how it could work in the UK, and which countries already have one.

Chancellor Rachel Reeves and Prime Minister Sir Keir Starmer at the launch of the 10-year health plan in east London. Pic: PA
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Will Chancellor Rachel Reeves and Prime Minister Sir Keir Starmer impose a wealth tax? Pic: PA

What is a wealth tax?

A wealth tax is aimed at reducing economic inequality to redistribute wealth and to raise revenue.

It is a direct levy on all, or most of, an individual’s, household’s or business’s total net wealth, rather than their income.

The tax typically includes the total market value of assets, including savings, investments, property and other forms of wealth – minus a person’s debts.

Unlike capital gains tax, which is paid when an asset is sold at a profit, a wealth tax is normally an annual charge based on the value of assets owned, even if they are not sold.

A one-off wealth tax, often used after major crises, could also be an option to raise a substantial amount of revenue in one go.

Read more:
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UN criticises Starmer’s welfare reforms and warns measures will ‘increase poverty rates’

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Wealth tax would be a ‘mistake’

How could it work in the UK?

Advocates of a UK wealth tax, including Lord Kinnock, have proposed an annual 2% tax on wealth above £10m.

Wealth tax campaign group Tax Justice UK has calculated this would affect about 20,000 people – fewer than 0.04% of the population – and raise £24bn a year.

Because of how few people would pay it, Tax Justice says that would make it easy for HMRC to collect the tax.

The group proposes people self-declare asset values, backed up by a compliance team at HMRC who could have a register of assets.

Which countries have or have had a wealth tax?

In 1990, 12 OECD (Organisation for Economic Co-operation and Development) countries had a net wealth tax, but just four have one now: Colombia, Norway, Spain and Switzerland.

France and Italy levy wealth taxes on selected assets.

Colombia

Since 2023, residents in the South American country are subject to tax on their worldwide wealth, but can exclude the value of their household up to 509m pesos (£92,500).

The tax is progressive, ranging from a 0.5% rate to 1.5% for the most wealthy until next year, then 1% for the wealthiest from 2027.

Bogota in Colombia, which has a wealth tax
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Bogota in Colombia, which has a wealth tax

Norway

There is a 0.525% municipal wealth tax for individuals with net wealth exceeding 1.7m kroner (about £125,000) or 3.52m kroner (£256,000) for spouses.

Norway also has a state wealth tax of 0.475% based on assets exceeding a net capital tax basis of 1.7m kroner (£125,000) or 3.52m kroner (£256,000) for spouses, and 0.575% for net wealth in excess of 20.7m kroner (£1.5m).

Norway has both a municipal and state wealth tax. Pic: Reuters
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Norway has both a municipal and state wealth tax. Pic: Reuters

The maximum combined wealth tax rate is 1.1%.

The Norwegian Labour coalition government also increased dividend tax to 20% in 2023, and with the wealth tax, it prompted about 80 affluent business owners, with an estimated net worth of £40bn, to leave Norway.

Spain

Residents in Spain have to pay a progressive wealth tax on worldwide assets, with a €700,000 (£600,000) tax free allowance per person in most areas and homes up to €300,000 (£250,000) tax exempt.

Madrid in Spain. More than 12,000 multimillionaires have left the country since a wealth tax was increased in 2022. Pic: Reuters
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Madrid in Spain. More than 12,000 multimillionaires have left the country since a wealth tax was increased in 2022. Pic: Reuters

The progressive rate goes from 0.2% for taxable income for assets of €167,129 (£144,000) up to 3.5% for taxable income of €10.6m (£9.146m) and above.

It has been reported that more than 12,000 multimillionaires have left Spain since the government introduced the higher levy at the end of 2022.

Switzerland

All of the country’s cantons (districts) have a net wealth tax based on a person’s taxable net worth – different to total net worth.

Zurich is Switzerland's wealthiest city, and has its own wealth tax, as do other Swiss cantons. Pic: Reuters
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Zurich is Switzerland’s wealthiest city, and has its own wealth tax, as do other Swiss cantons. Pic: Reuters

It takes into account the balance of an individual’s worldwide gross assets, including bank account balances, bonds, shares, life insurances, cars, boats, properties, paintings, jewellery – minus debts.

Switzerland also works on a progressive rate, ranging from 0.3% to 0.5%, with a relatively low starting point at which people are taxed on their wealth, such as 50,000 CHF (£46,200) in several cantons.

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Jingye and Whitehall officials hold talks over British Steel future

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Jingye and Whitehall officials hold talks over British Steel future

The Chinese owner of British Steel has held fresh talks with government officials in a bid to break the impasse over ministers’ determination not to compensate it for seizing control of the company.

Sky News has learnt that executives from Jingye Group met senior civil servants from the Department for Business and Trade (DBT) late last week to discuss ways to resolve the standoff.

Whitehall sources said the talks had been cordial, but that no meaningful progress had been made towards a resolution.

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Jingye wants the government to agree to pay it hundreds of millions of pounds for taking control of British Steel in April – a move triggered by the Chinese group’s preparations for the permanent closure of its blast furnaces in Scunthorpe.

Such a move would have cost thousands of jobs and ended Britain’s centuries-old ability to produce virgin steel.

Jingye had been in talks for months to seek £1bn in state aid to facilitate the Scunthorpe plant’s transition to greener steelmaking, but was offered just half that sum by ministers.

More on British Steel

British Steel has not yet been formally nationalised, although that remains a probable outcome.

Jonathan Reynolds, the business secretary, has previously dismissed the idea of compensating Jingye, saying British Steel’s equity was essentially worthless.

Last month, he met his Chinese counterpart, where the issue of British Steel was discussed between the two governments in person for the first time.

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Inside the UK’s last blast furnaces

Jingye has hired the leading City law firm Linklaters to explore the recovery of hundreds of millions of pounds it invested in the Scunthorpe-based company before the government seized control of it.

News of last week’s meeting comes as British steelmakers face an anxious wait to learn whether their exports to the US face swingeing tariffs as part of US President Donald Trump’s trade war.

Sky News’s economics and data editor, Ed Conway, revealed this week that the UK would miss a White House-imposed deadline to agree a trade deal on steel and aluminium this week.

Read more from Sky News:
Is Britain going bankrupt?
Public finances in ‘relatively vulnerable position’, OBR warns

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Jingye declined to comment, while a spokesman for the Department for Business and Trade said: “We acted quickly to ensure the continued operations of the blast furnaces but recognise that securing British Steel’s long-term future requires private sector investment.

“We have not nationalised British Steel and are working closely with Jingye on options for the future, and we will continue work on determining the best long-term sustainable future for the site.”

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