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Labour urged to consider wealth tax as Reeves visits Scotland – UK politics live | Politics

BySoCal Chronicle

Aug 1, 2025


Government urged to consider wealth tax as chancellor visits Scotland

Good morning and welcome to the UK politics blog. My name is Tom Ambrose and I’ll be bringing you all the latest news lines throughout the day.

We start with news that the Treasury should consider a wealth tax to close the growing gap in the public finances, according to a Labour former shadow chancellor.

Anneliese Dodds, who held the role under Keir Starmer in opposition, said ministers must have a “full and frank discussion” with the public about the “really big decisions” they had to take at this autumn’s budget.

With Rachel Reeves aiming to fill a financial hole that economists say could exceed £20bn, the senior Labour MP said there was “no silver bullet” to funding big-ticket items such as defence, but the chancellor should consider tax rises.

Dodds quit her post as international development minister in February over the government’s decision to slash the aid budget to pay for increased defence spending – a move she said was a mistake that would have a big impact on global security.

With Russia and China already stepping into the gap to boost their own global influence, she said now was not the time for the UK to be “walking back” from using soft power.

Read the full report here:

Reeves is visit Scotland later today. She will visit RAF Lossiemouth in Moray and the St Fergus gas plant in Aberdeenshire on Friday.

The chancellor is expected to meet with 200 Boeing employees at the Lossiemouth military base, where three E-7 Wedgetail aircraft are being worked on, the National reports.

The UK government has previously said that its plan to increase defence spending to 2.6% of GDP could boost the economy by around 0.3% and create 26,100 jobs in Scotland.

In other developments:

Key events

Civil service interns must be working class, government says

The government will tighten eligibility criteria for Whitehall internships as part of a broader push to make the civil service more representative of the working class.

According to the BBC, the main internship scheme will now be limited to students from “lower socio-economic backgrounds” and based on which occupations their parents held when they were 14.

Pat McFadden, the Chancellor of the Duchy of Lancaster and the minister responsible for civil service reform, said that Whitehall needed to reflect the broader community, PA reported.

“We need to get more working-class young people into the Civil Service so it harnesses the broadest range of talent and truly reflects the country,” he told the BBC.

“Government makes better decisions when it represents and understands the people we serve.”

Changes are expected to take effect from summer 2026 and will give young people experience writing briefings, planning events, conducting policy research and shadowing civil servants, according to the broadcaster.

The existing work summer placement programme, which lasts up to eight weeks and is paid, is open to undergraduates in the final two years of their degree.



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