Shadow chancellor Rachel Reeves has promised to freeze business rates in England until 2023 and eventually scrap them entirely, replacing the system with a new 'modern' business tax. Speaking at the Labour Party conference in Brighton, she outlined plans for the 'biggest overhaul of business taxation in a generation' to support the Covid-damaged High Street.
Ms Reeves also committed to spending an extra £28bn a year on green investments until 2030, funded by government borrowing. The money would go towards offshore wind farms, tree planting, battery development, and other projects to help the UK meet its climate targets. She declared: 'I will be Britain's first green chancellor.'
The shadow chancellor proposed increasing the digital services tax from 2% to 12% and scrapping 'hundreds' of tax breaks. She also announced an Office of Value for Money, described as a 'hit squad' to scrutinise government spending and claw back money from Covid contracts where value was not delivered.
Labour's plans include making rates relief for smaller firms more generous and investing in industries such as hydrogen, electric vehicle batteries, and steel decarbonisation. The Federation of Small Businesses welcomed the proposals, while Greenpeace UK said tackling the climate crisis must be at the heart of Treasury policy.
