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What are Labour's new tax plans?
Labour's new tax plans focus on increasing resources for HMRC to combat tax evasion and avoidance, which is contributing to a £39.8 billion tax gap. Chancellor Rachel Reeves has emphasized the need for modernizing HMRC to ensure that everyone pays their fair share of taxes.
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How are other political parties responding to Labour's tax plans?
The Liberal Democrats, led by Sir Ed Davey, have criticized the Conservative government's cuts to winter fuel payments and are advocating for a fairer tax system. They propose reforms to capital gains tax as part of their response to Labour's plans, positioning themselves as a constructive opposition.
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What does this mean for the upcoming budget?
The ongoing debate over tax policy is likely to influence the upcoming budget significantly. With Labour's focus on closing the tax gap and addressing public spending, other parties will need to articulate their positions clearly to gain public support ahead of the budget announcement.
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Why is there a £39.8 billion tax gap in the UK?
The £39.8 billion tax gap in the UK is attributed to tax evasion and avoidance, which has been a persistent issue. The Labour government aims to tackle this by enhancing HMRC's capabilities and targeting those who exploit loopholes in the tax system.
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What are the implications of tax evasion for the UK economy?
Tax evasion has significant implications for the UK economy, including reduced public spending on essential services and increased pressure on taxpayers. By addressing the tax gap, the government hopes to improve funding for public services and create a fairer tax system.