Sir Keir Starmer is vowing to take on “the NIMBYs” by reducing legal challenges to infrastructure building, while one of his top team has said Britain can learn from the optimistic tone struck by Donald Trump since returning to the White House.
Thursday 23 January 2025 11:45, UK
Chancellor Rachel Reeves has been speaking at a fringe event at the World Economic Forum in Davos.
Asked about the 10,800 millionaires who left the UK last year, Ms Reeves revealed the government will be tabling an amendment to the Finance Bill, which will see the October budget’s taxation plans become law.
“We have been listening to the concerns that have been raised by the non-dom community,” she told Emma Tucker, editor of The Wall Street Journal.
The amendment will increase the amount of money non-domiciled residents can bring immediately to the UK without paying significant taxes.
No change to double-taxation agreements
The chancellor also tried to reassure non-doms the changes to rules would not affect double-taxation agreements with other countries.
“There’s been some concerns from countries that have double taxation conventions with the UK, including India, that they would be drawn into paying inheritance tax,” she said.
“That’s not the case: we are not going to be changing those double-taxation conventions.”
A Treasury source told The Times: “We’re always interested in hearing ideas for making our tax regime more attractive to talented entrepreneurs and business leaders from around the world to help create jobs and wealth in the UK.”
The UK lost a net 10,800 millionaires to migration last year, a 157% increase on 2023.
The actual number who moved out is even higher because the net figure takes into account the millionaires who arrived in the UK.
A study found the exodus accelerated after the general election was called.
By Paul Kelso, business and economics correspondent, in Davos
The UK can learn from Donald Trump’s optimistic tone at the start of his second term in office, according to Business Secretary Jonathan Reynolds.
Speaking in Davos, where he is meeting overseas companies, investors, and trade partners at the World Economic Forum, he said he had been struck by the president’s upbeat message and there were many reasons to be optimistic about the UK’s prospects.
‘We have to show we can make a difference’
Asked if he admired the speed with Mr Trump had acted, he told reporters: “I wouldn’t put it in those terms.
“But I listened to the inauguration speech and I think there is a test in most countries in the Western world, with people asking ‘can government deliver for me, can it address the issues?’
“I could see that was part of the picture he was making and detected a very optimistic message. He started the speech with ‘a new golden age has begun’. You could see how he was communicating that part of things.
“It would be wrong to say we should be more like Trump, but we do have to show people that we can make a difference to their lives.”
Doom and gloom
His comments contrast with the gloomy tone initially set by Sir Keir Starmer, who began his premiership with a speech emphasising the economics and social challenges left by the Conservatives.
Market watchers and investors have suggested downbeat messaging contributed to low consumer and business confidence the government is now having to address.
Mr Reynolds has met with firms including Siemens, German power giant RWE, Amazon Web Services and Saudi petrochemical manufacturer SABIC while in Davos.
He said he was stressing to investors the steps the government is taking to remove barriers to business in planning and regulation.
‘We should be really optimistic’
“I think there is a huge issue in the UK where people recognise the tremendous things that we have got – from language, timezone, and higher education to our capital markets,” Mr Reynolds said.
“But there are major problems with how long it takes to build infrastructure in the UK.”
And he said his visit had confirmed his view that the UK had much to be positive about.
“I do think we should be really optimistic for the future,” he said, adding conversations he’s had suggested some firms are interested in listing or redomiciling in the UK.
The government has “no current plans” to join a European customs union.
Cabinet Office minister Nick Thomas-Symonds has just told MPs the UK was looking to develop relationship with European neighbours, and reduce trade barriers.
Mr Thomas-Symonds was asked in the Commons about comments made by European Union trade boss Maros Sefcovic that Britain could join the Pan-Euro-Mediterranean Convention (PEM).
“We want to increase trade, increase exports, all around the world. It is hugely important, as the prime minister said we don’t choose between allies. We look to deepen all our relationships.”
Mr Thomas-Symonds continued: “We do not currently have any plans to join PEM, and we are not going to provide a running commentary on every comment that is made.”
Sir Keir Starmer will attend a summit with European leaders in a fortnight.
There was a 286% rise in the number of parliamentary staff who lost their job after July’s general election compared with 2019, the Independent Parliamentary Standards Authority (IPSA) has revealed.
IPSA, which regulates and administers MPs’ business costs and staffing, said it has processed redundancy payments for 2,023 people who worked for MPs.
That is on top of 218 MPs who were effectively made redundant as they were voted out, as well as 132 who stood down.
Any MP who was not returning had until 4 November to close down their office, which is run like a small business so involved ending lease agreements, returning property and making members of staff redundant.
Staff who lost their jobs included constituency caseworkers, parliamentary assistants and administrative support workers.
‘A once-in-a-generation change’
IPSA provided £52.8m to enable the transition from one parliament to the next – about a quarter of that went on redundancy pay.
At the 2019 election there was a 24% turnover in MPs, with 460 staff losing their jobs, but last year saw a 51% turnover and 2,023 job losses.
IPSA chair Richard Lloyd said: “This was a once-in-a-generation change of parliament.
“An MP’s office is like a small business. They are the employer, and any MP not returned in the 2024 General Election had until 4 November to close down their office entirely.
“IPSA’s task was to support the thousands of newly-unemployed members of staff and facilitate the transition between parliaments.”
Calls to establish a compensation scheme for women affected by changes to the state pension age could be pushed to a symbolic Commons vote next week.
SNP Westminster leader Stephen Flynn wants to introduce the Women’s State Pension age (Ombudsman report and compensation scheme) Bill to the Commons for further consideration.
His proposed bill would require ministers to publish measures to address the findings of the Parliamentary and Health Service Ombudsman (PHSO) report, which recommended the government pay compensation to women born in the 1950s whose state pension age was raised so it would be equal with men.
How would it work?
The watchdog said the women should be paid up to £2,950 each, a package with a potential total cost of £10.5bn to the public purse, as poor communication meant they had lost out on the change to plan their retirement finances.
But the government last month ruled out a compensation package despite Prime Minister Keir Starmer and Chancellor Rachel Reeves being among the senior ministers to support the Women Against State Pension Inequality (Waspi) campaign when Labour was in opposition.
Mr Flynn will seek permission on 28 January to introduce his bill to the Commons for further consideration.
A Commons vote on Mr Flynn’s motion under the 10-minute rule process would not force a change, but could highlight the level of unhappiness among Labour backbenchers over the government’s stance.
The EU could consider the UK joining a continent-wide trade agreement, as Sir Keir Starmer’s government seeks a reset with the bloc, a European trade chief has indicated.
Maros Sefcovic, who led post-Brexit negotiations for the EU, told the BBC the UK joining the Pan-Euro-Mediterranean Convention (PEM) is “something we could consider”.
The PEM allows for tariff-free trade of goods across Europe, as well as some North African and Levantine nations.
‘The ball’s in the UK’s court’
Some business groups have backed the UK joining PEM as it would help to maintain complex supply chains, but the previous Tory government chose not to pursue it as part of a post-Brexit trade agreement.
Speaking to the BBC at the World Economic Forum in Davos, Switzerland, Mr Sefcovic said the idea had not yet been “precisely formulated” and that the “ball is in the UK’s court”.
The government has begun consulting with businesses on the benefits of the PEM plan and how it could help cut red tape and improve trade, the BBC said.
👉 Listen to Politics At Jack And Sam’s on your podcast app👈
Sky News’ deputy political editor Sam Coates and Politico’s Dan Bloom look at the day ahead in British politics.
Today Sir Keir Starmer is on the NIMBY offensive to boost economic growth, with plans to reduce the number of times people can go to the courts to block infrastructure schemes.
The government hopes it will mean projects like nuclear power stations, wind farms and railway lines can call get built quicker. But can they do it and will it work?
Meanwhile with latest borrowing figures surprisingly high, Rachel Reeves is still under a lot of pressure to meet her fiscal rules. But Sam explains why welfare cuts won’t help her at the spring statement.
The biggest news of the day though will of course be the sentencing of Axel Rudakubana for the Southport murders. With more details of his horrific crimes to be revealed then, Sam and Dan discuss the continuing political fallout.
You can send us a WhatsApp on 07511 867 633 or email us:jackandsam@sky.uk
Matthew Pennycook, the housing minister, is now joining Kay Burley on Sky News Breakfast.
Asked if the government will be ripping up environmental laws in order to boot building, the minister denied this is the case.
“We’re not ripping up environmental laws,” he says.
“If environmental groups want to bring one challenge, if it doesn’t have a solid basis in the eyes of the judge in question, two if it does, but we’re removing the initial paper application.”
But what happens with wildlife surveys?
They can continue to take place, Mr Pennycook says.
“We’re not fundamentally reducing the number of judicial review commission attempts.”
He is then asked if he agrees with Chancellor Rachel Reeves that growth in UK is a priority over other pledges – like net zero.
“I don’t think it’s about playing one of these off against the other,” the minister says.
“The chancellor is right, we’ve been clear about this from the moment we came into office, growth is the number one priority of this government and will remain so.”
However, Mr Pennycook insists Labour is “accelerating” its plan for net zero through the clean power mission.
He reiterates that the two things “don’t need to be set off against each other, but growth is a priority”.
The minister refuses to comment on speculation around the potential expansion of Heathrow Airport.
By Tomos Evans, Wales reporter
Senedd members could lose their seats under new plans recommended to the Welsh government.
Currently, there is no mechanism in place to unseat a member of the Senedd (MS) if they are found to have breached the members’ code of conduct.
In Westminster, legislation was introduced in 2015 to remove MPs found guilty of certain offences.
To trigger a by-election, 10% of the electorate need to sign a recall petition within a six-week period.
A recall system is also set to be introduced in the Scottish parliament, with legislation currently being debated at Holyrood.
But the proposed system in Wales would be a ballot rather than a petition, and it would only give voters one day to vote on whether to keep the current member or replace them with the next candidate on the party’s list.
By Faye Brown, political reporter
Former home secretary Lord Blunkett has called for a cap on political donations made by companies and stricter rules on “where money originates”.
The Labour stalwart – who is now a member of the House of Lords – told Sky News that he is not against firms or trade unions being able to give cash to parties but “it seems sensible to have an upper ceiling” on how much.
He also called for the “prevention of smart ways” of foreign money entering British politics.
While political parties are banned from accepting foreign donations, critics say “loopholes” mean people abroad can still give money via a UK-based company.
The issue has been in the spotlight amid reports X owner Elon Musk could give millions to Reform UK.
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