Marie Rimmer
Main Page: Marie Rimmer (Labour - St Helens South and Whiston)Department Debates - View all Marie Rimmer's debates with the HM Treasury
(1 year, 6 months ago)
Commons ChamberI do not think I have followed the hon. Member for South Cambridgeshire (Anthony Browne) before, but here we are.
Our tax system is broken. It is unfair and unjust. Non-dom status gives the wealthiest a way of avoiding tax, no doubt while the people who work for them pay out a disproportionate amount of their income in tax. Three in 10 people earning £5 million or more claim non-dom status, whereas the figure is fewer than three in 1,000 among those earning less than £100,000. This is a tax scheme that is taken advantage of by the wealthiest. If Britain is your home and you are making your life here, you should pay your taxes here—it really is that simple. Non-doms get the benefits from all of our taxes, but they are not paying their fair share. It is troubling that there are Members of this and the other place who use non-dom status. If they are voting on issues that have an impact on this country, they should be paying tax here.
Non-dom status was introduced more than 200 years ago. It lets people dodge millions in tax. It is not fit for the modern era. It is not progressive or fair. Working people are having to pick up the tab while non-doms enjoy tax-free earnings. Labour will introduce a modern scheme that will be fair to people who are genuinely in the UK for short periods, to allow us to continue to attract top international talent.
Our system will be fit for purpose in the 21st century. As colleagues have mentioned, the money generated will make a huge difference to our country. Our NHS is struggling. Not enough home-grown doctors and nurses are being trained, but we will do that. There are not enough places for them to study. One of the most common arguments against abolishing non-dom status is that it would cause a mass exodus of international talent, yet research by the London School of Economics shows that only 0.3% of the people affected would leave. That is a tiny fraction of the non-doms. The reality is that they enjoy living here in Britain. Britain is their home. They use the non-dom legal loophole as it is readily available. The study shows that non-doms are more than happy to keep Britain as their home.
Over the course of the pandemic, the wealthiest have got even richer and our country has become even more unequal. Labour, in power, will have the guts to abolish non-dom status and tackle offshore trusts and tax havens. We will introduce a modern tax system that is fit for purpose and fair for all, bringing our rules into line with those of other major economies such as France, Germany and Canada.