Shadow chancellor Rachel Reeves has explicitly ruled out a wealth tax if Labour wins the next election, further distancing the party from tax increases. In an interview with the Sunday Telegraph, she confirmed no plans for a mansion tax, capital gains tax rise, or an increase to the 45p top rate of income tax.
“We have no plans for a wealth tax,” Reeves said. “We don’t have any plans to increase taxes outside of what we’ve said. I don’t see the way to prosperity as being through taxation. I want to grow the economy.” She also confirmed that Keir Starmer’s leadership pledge to raise the top rate is now off the table, after he signalled a shift in June.
The remarks underline Labour’s strategy to blunt Conservative attacks on economic competence, with party figures wary of unfunded spending commitments. Reeves emphasised growth over taxation: “It is going to be through growing our way there.” Labour plans to target Rishi Sunak’s economic record, as internal polling shows Tory-to-Labour switchers frustrated by his optimism on inflation.
Reeves’ stance marks a departure from her 2021 comments that “people who get their income through wealth should have to pay more.” Labour has stepped up corporate outreach, with its annual business forum oversubscribed by 75%. The party remains committed to scrapping non-dom tax status, closing a private equity loophole, adding VAT to private school fees, and tackling tax avoidance.
Leftwing campaign group Momentum criticised the move, stating: “Four people in this country have more wealth than 20 million Britons. This is a political choice to favour big business and the one per cent over ordinary people.”
