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Former Chancellor Mocks Labour’s Spending Plans After Scrapping Non-Dom Tax

Labour’s proposal to eliminate the non-dom tax status and redirect the funds has been ridiculed by ex-Tory Chancellor George Osborne. The Opposition, led by Sir Keir Starmer, aims to generate £3.2 billion in tax revenue by ending the tax regime, where UK residents with a permanent home abroad are exempt from income tax on foreign income.

Osborne, on his Political Currency podcast, criticized Labour’s inconsistent allocation of the funds, questioning the feasibility of their financial plans. He highlighted contradictions in how Shadow Education Secretary Bridget Phillipson, Shadow Health Secretary Wes Streeting, and Sir Keir Starmer intended to use the money for various initiatives, such as breakfast clubs, NHS workforce expansion, and supervised toothbrushing for three to five-year-olds.

The toothbrushing pledge, presented as part of a “rescue plan for NHS dentistry,” drew scepticism. Teachers were suggested to oversee the initiative, but concerns were raised by Paul Whiteman, general secretary of the National Association of Head Teachers, who emphasized that it wasn’t the role of teachers to ensure daily tooth brushing.

Podcast co-host Ed Balls, a former Labour education secretary and shadow chancellor, expressed doubts about the coherence of Labour’s spending priorities. He stressed the importance of clear financial explanations, stating, “If you’re in opposition and the sums don’t add up, you’re in massive trouble.”

In October, Sir Keir Starmer justified the move, emphasizing the non-dom tax status as a legal loophole benefiting the wealthiest individuals globally and pledged to invest the recovered funds in the NHS.

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