Labour announces immigration plans
Labour leader Ed Miliband vowed to abolish the UK's non-dom tax system Reuters

A number of leaders in the City of London have spoken out in favour of Ed Miliband's pledge to reform the UK's "non-domicile" tax laws.

The system, which has been established for 200 years, allows foreign nationals and some Britons to reside in the UK but to cite a foreign country as their domicile, meaning they do not pay full tax on earnings outside the UK.

Among those backing Miliband's proposal to shake up the system are BAE Systems chairman Roger Carr, Land Securities chairman Alison Carnwath and celebrity entrepreneur Duncan Bannatyne.

Miliband has come in for harsh criticism from parts of the City, London's financial hub, for some of his potential policies. Plans to introduce a bankers' bonus tax have been met with outright discord. Yet, the Labour leader's initiative to get rid of non-dom status has found growing support among business leaders.

For its part, the Conservative Party has largely brushed off the plan to abolish non-dom status, suggesting such a move could chase foreign investors from the country altogether.

Meanwhile, Ukip leader Nigel Farage has attacked Labour leader for being too close to "big business", as he sought to portray Miliband as out of touch with Labour's core voters.

"I really think that traditional Labour voters, who care about issues like immigration and Europe, just cannot vote for Miliband," Farage told the Daily Express.

"Ed is a sincere man, but in terms of being in touch with reality, he's away with the fairies. Intellectually, he is very left-wing. What worries me more is his adherence to the new corporatism. It is as if Ed is the greatest spokesman for multi-national business. And that is the very opposite of what the Labour Party was formed to do."

The attack might come as a surprise to Miliband, who set up the election as a battle between his party and the big business-supporting Tories.

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