Rachel Reeves has been accused of a “Davos deal for millionaires” after announcing she was watering down moves to make wealthy foreigners pay more tax. The chancellor said she had been “listening to the concerns” of “non-doms” living in the UK.

Experts said the tax changes contributed to a growing exodus of millionaires from the UK - and the chancellor should find ways to attract them back to help the economy.

Chancellor of the Exchequer Rachel Reeves said she will relax some of her changes to the UK’s tax regime for wealthy foreigners, known as “non-doms,” amid concerns the Labour government’s policies are pushing millionaires to leave the country.

Chancellor Rachel Reeves has indicated the Labour Government will be making an U-turn on one of her controversial tax decisions which was announced during the Autumn Budget. Specifically, Reeves has asserted she is open to relaxing the rules impacting the "non dom community" in a move to stop wealthy taxpayers fleeing the UK while appearing at the