Chancellor Rachel Reeves stressed at a G20 finance leaders meeting in Brazil that the new Labor government has no plans to raise income, national insurance, or value-added taxes.
Reeves emphasized that the tax burden on working people is already too high and stated, “I want to be crystal clear. We have inherited a mess. But I am going to fix the mess that the Tories have left us.”
Despite not ruling out future changes to wealth, property, and inheritance taxes, Reeves left few clues about her upcoming fiscal statement, which will initiate the new government’s budgeting process culminating in an Autumn budget statement. However, she confirmed that taxes on foreign-born property owners in Britain and on energy companies would be increased as previously promised.
Reeves highlighted the importance of progressive tax systems but warned against measures that might deter entrepreneurs. “You’ve got to strike the right balance on this. I want the new Labor government to be pro-growth, pro-wealth creation. You’ve got to get the balance right,” she said.
On the international stage, Reeves expressed support for the ongoing G20 discussions in Rio de Janeiro aimed at making tax systems more equitable for the ultra-wealthy. She also reported progress in talks on the “Pillar 1” arrangement, which aims to reallocate taxing rights for large multinational companies, indicating confidence that remaining issues could be resolved by the autumn.
Reeves will address the British parliament on Monday (29) regarding public finances and spending pressures. She reiterated her commitment to not making any unfunded spending promises, adhering strictly to fiscal rules. “I want taxes to be lower, not higher, but I’m not going to make any commitments without being able to say where the money’s going to come from,” Reeves stated.
