Overview

• The prime minister has paused plans for a 2% levy on assets above £10 million following warnings that further taxes on the rich could curb GDP growth
• Projections show 16,500 millionaires are set to leave the UK this year after the non-dom status abolition, leaving tax receipts far below government forecasts
• Number 10 will hire its first political economic adviser since Ravinder Athwal’s exit to ensure Downing Street shapes the upcoming Budget alongside the Treasury
• The elevation of Blairite adviser Liz Lloyd signals a shift in influence that may sideline more left-wing policy chiefs such as Stuart Ingham
• Chancellor Rachel Reeves now faces the task of identifying alternative revenues to fill a £5 billion gap after welfare cuts were overturned