Nigel Farage will announce a Robin Hood-style tax tomorrow on rich foreigners up to £250,000. The Reform UK leader plans to impose a one-off payment on newcomers or those hoping to return to the UK.
Labelled as an “entry contribution”, the law would target non-dom foreigners who live in the UK but pay no tax on foreign income. Reform has consistently attempted to place itself as the party of the working class, with Farage stipulating that he aims to represent the people who “set their alarm clocks” in the morning. But Labour and Conservative critics have slammed the plan as lacking substance and “ruinously irresponsible.”
A party source told The Sun: “Since the 2008 crash, the Bank of England pumped billions into the economy — but the working class didn’t see a penny.
“This is about repairing the social contract.
“For once, the working class should be getting the bonus.”
A Labour spokesperson added: “As ever with Reform, the devil is in the detail. This giveaway would reduce revenues raised from the rich that would have to be made up elsewhere, through tax hikes on working families or through Farage’s promise to charge them to use the NHS.”
Shadow Chancellor Mel Stride said: “The British public needs a real plan for putting more money in their pockets.
“Reform’s promises are ruinously irresponsible.”
Reform UK believes that the scheme could raise as much as £1.5 billion a year for the UK coffers, which would allow them to give £600 to 2.5 million low-paid workers annually.
Under the scheme, those entering the UK would be given a “Britannia card” which would grant them a range of tax exemptions and would prevent them from having to pay tax on income earned outside of the UK.
Britannia cardholders would still be liable to pay tax on income earned in the UK, and the levy would be renewed every ten years.
Rachel Reeves announced measures in October’s budget aimed at targeting the earnings of non-doms who are able to avoid paying tax in the UK.
However, after serious pressure, the Chancellor is understood to be considering watering down her non-dom policy by easing rules surrounding inheritance tax.