There are currently no plans to review the operation of the Barnett formula. The Barnett formula has stood the test of time because it is simple and efficient, and it provides a clear and certain outcome. It is a key part of the arrangements for pooling and sharing risks and resources across the United Kingdom.
We know that if the Government today pass their disgraceful, discriminatory and, some say, illegal cuts to disability support, that will almost certainly lead to a reduction in the Scottish budget as a result of the Barnett formula. That is a deliberate choice that Scottish Labour MPs will be making if they support these cuts, and for which they must answer to their constituents. Will the Chancellor or the Minister tell them, this House and, indeed, the nation exactly how many millions of pounds they will voting to take out of the pockets of disabled and vulnerable people in Scotland, many of whom voted for Labour almost a year ago?
One thing I can tell the Scottish people, and indeed the House, is that it is this Labour Government who have given the largest real-terms increase in spending to the Scottish Government since devolution began—billions and billions of pounds of extra money is going to the Scottish National party Government in Holyrood. On devolved matters, it is for the SNP Government to be accountable for the delivery of public services to people in Scotland, where they are failing on everything from the NHS to welfare and the economy.
In the recent spending review, the Chancellor outlined plans for a multimillion-pound investment in essential building works at Budmouth academy in Weymouth. We welcome that new investment in local schools in our town, and it will enable Budmouth academy finally to upgrade its school buildings. Looking ahead, will the Chancellor work with me to speedily deliver the new investment and ensure that Budmouth academy gets a richly deserved upgrade as soon as possible?
His Majesty’s Revenue and Customs uses a range of data sources to monitor the wealthy population. International exchanges of information, including the common reporting standard and US Foreign Account Tax Compliance Act data, offer opportunities to develop deeper insight into the international financial affairs of some of the UK’s wealthiest taxpayers.
The Government are committed to ensuring that there are fewer sick and disabled people in poverty by helping them into work and getting them off NHS waiting lists. That is why at the spring statement we announced the largest investment in employment support in at least a generation. The Government have already taken action to tackle poverty, including with the fair repayment rate, which lowers the cap on deductions in universal credit, and we have increased the national living wage by 6.7%. Beyond that, we are investing to reduce poverty by expanding free school meals and investing in a £1 billion settlement for crisis support. We will set out our child poverty strategy in the autumn. We have invested £29 billion in reducing NHS waiting lists, and since we took office there are 385,000 more people in work.
The Minister will no doubt be aware of reports of the so-called exodus of millionaires. Those reports are from “high profile individuals” and city spokespeople, but there are rarely hard numbers behind them. Are Treasury Ministers able to verify the Tax Justice Network’s research that says that just 0.3% of millionaires have exited the UK and that that number has remained low and stable over the past decade, and will they publish their own figures as well?
When considering fiscal measures or financial changes, the figures that matter are those provided by the Office for Budget Responsibility. The OBR has certified that the non-dom reforms that the Government have implemented will raise £33.8 billion in total revenue, and that figure accounts for some non-doms who are ineligible for the new regime choosing to leave the UK.
Public investment makes us all more prosperous, but clearly that public investment, in our roads, rail and energy infrastructure, needs to be paid for. Will the Minister set out how we are funding that public investment by taxing the very richest people in this country?
My hon. Friend is absolutely correct that our changes to the non-dom reporting regime are essential to raise billions of pounds to support the public finances and get our public services back on their feet. I contrast that with some of the proposals set out by opposition parties. Indeed, Reform UK’s plans are for a tax cut for foreign billionaires.
In her Budget last year, the Chancellor tucked away about £10 billion over the next couple of years from reform to the non-dom tax regime. It is important to remember that the OBR said in its fiscal outlook that that figure was “highly uncertain”, and a high-level survey by Oxford Economics found that fully two thirds of non-doms are considering leaving the country in the next couple years as a direct result of those policies. That implies not an increase of £10 billion but a decrease of £8 billion. The Chancellor has created a fiscal black hole of £18 billion with just one policy alone. In this week of heroic U-turns from the Government Front Bench, will the Minister confirm whether they will be axing this tax? When will it finally be condemned to the history books?
I am not really sure whether there was a policy suggestion in that comment or not. As the shadow Minister will know, the fiscal black hole that we had to address when we won the general election was the £22 billion black hole that the Conservatives left after their mismanagement of the economy. As I said, the Office for Budget Responsibility has confirmed that our reforms to the non-dom regime, with our removal of non-dom tax status, will raise £33.8 billion over the five years of the forecast. It is the OBR’s figures that we will trust in that regard.