Labour’s promise to abolish Britain’s 200-year-old “non-domicile” rule was made controversial on Wednesday when previously remarks of shadow chancellor, Ed Balls, contradicted with the party’s current stance as he warned it would drive people out of Britain and cost the Treasury money. Back in January, Mr Balls alleged that “if you abolish the whole status, it probably ends up costing Britain money because some people will leave the country.”
Whereas on the other hand, Mr Balls mentioned on Wednesday that “independent experts” have alleged that the abolition of non-domicile status would raise £1bn, while Labour leader Ed Miliband scoffed at warnings by “some people” of an exodus of the wealthy. The Conservatives highlighted the clearly contradicting accounts and alleged that it proves that Labour’s policy was “unravelling.” According to George Osborne, the incident was evidence of a “total shambles” and showed how Labour was putting politics above economics and was unfit to run the economy.
Addressing the audience at Warwick University, Mr Miliband recently insisted on ending the non-dom rule and declared it both morally right and financially responsible. Furthermore, he stated that “I don’t buy the argument about it not raising resources,” speaking in reference to the statement that by some tax experts that the move could bring in hundreds of millions of pounds for the exchequer. He stated that “I’m also absolutely clear that it’s right in principle. We are not carrying on with this rule: we are abolishing this rule. It’s the right thing to do.”
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