Shadow chancellor Rachel Reeves has explicitly ruled out Labour imposing a wealth tax if it wins the next election, as the party intensifies its focus on demonstrating economic competence. In an interview with the Sunday Telegraph, Reeves confirmed that a Labour government would not introduce a mansion tax on expensive properties, increase capital gains tax, or raise the 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 increase the 45p top rate of income tax is now off the table, after Starmer indicated in June he was no longer keen on the idea.
Reeves’ remarks underline Labour’s strategy to blunt Conservative attacks, with party figures wary that any hints of tax rises or unfunded spending commitments could be used to suggest profligacy. The party also plans to attack Rishi Sunak’s stewardship of the economy, as internal polling suggests Tory-to-Labour switchers are irritated by his optimism on inflation when their own finances are not improving.
Labour has stepped up its focus on wooing the corporate sector, with the annual business forum at the party’s conference this autumn over-subscribed by 75%, with 200 delegates attending and 150 on the waiting list. Reeves said the party’s policies are about encouraging businesses to invest in Britain, rather than taxing to fund public services.
A Labour source confirmed that Reeves’ words also apply to “any form of mansion tax”, which the party proposed under Ed Miliband before the 2015 election. Labour remains committed to scrapping non-dom tax status, closing a tax loophole for private equity fund managers, adding VAT to private school fees, and cracking down on tax avoidance.
