Trevor Phillips wasted no time comparing Rachel Reeves to Liz Truss, taking aim at both her recent shift on non-dom taxes and her tough stance on benefit fraud. During a combative Sky News interview, the presenter suggested Reeves’s rhetoric echoed that of the short-lived former prime minister who famously tanked the UK economy.
A Surprising Comparison
While grilling the chancellor, Phillips read out a quote praising deregulation and blasting a slow, choked-off economy. Reeves agreed in principle—only for Phillips to reveal the statement belonged to Liz Truss. Reeves insisted she had no intention of repeating Truss’s economic missteps, claiming she’d always planned “practical actions” for growth.
The Non-Dom U-Turn
Earlier in the week, Reeves faced criticism for softening her pledge to close the non-dom loophole, allowing wealthy foreign nationals to pay less tax on their overseas earnings. Critics pointed out this comes after she promised a firm crackdown. Reeves, however, defended her modified policy:
“People making Britain their home should pay taxes here. Under Labour, they will.”
She says Labour’s scheme will charge non-doms lower tax rates for three years but ultimately remove non-dom status. Phillips pressed her, pointing out she’d still changed the amount non-doms pay.
Benefit Fraud vs. Farmer Concerns
Reeves is also taking heat for pledging a crack-down on benefit fraud, while simultaneously seeming less willing to accommodate farmers’ inheritance tax relief. This prompted Phillips to observe:
“It looks like non-doms get sympathy and people on welfare get tough love.”
Reeves responded that fraud must be addressed—people should not claim what they are not entitled to. Meanwhile, critics say it’s a mixed message when millionaires walk away with tax breaks.
“Championed Britain” vs. “Channelling Eeyore”
Phillips also challenged Reeves’s sudden optimism. He reminded her that only months ago, she and the prime minister were “channelling Eeyore,” yet are now touting a Tigger-like positivity. Reeves responded that the IMF’s upgraded forecast for the UK economy justifies a brighter outlook, albeit she admitted 3% growth remains elusive.
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