Rachel Reeves vows to cap company tax for 5 years after Tory U-turns
Rachel Reeves has vowed to cap company tax if Labour wins the subsequent common election.
The Shadow Chancellor stated the present fee of 25% won’t change for the primary time period of a Labour Government as she addressed enterprise leaders. Ms Reeves, who hailed Labour as a “pro-business party”, stated the dedication can be included within the social gathering’s common election manifesto.
In a speech to Labour’s Business convention, Ms Reeves stated: “There have been 26 changes to our corporation tax arrangements in this Parliament alone. We can’t go on like this. We reject the calls from those on the right wing of the Conservative Party to cut corporation tax. Our current rate is the lowest in the G7.
“We consider that 25% fee strikes the right steadiness between the wants of our public funds, and the calls for of a aggressive international financial system.
“The next Labour government will make the pro-business choice and the pro-growth choice: We will cap the headline rate of corporation tax at its current rate of 25% for the next parliament. And should our competitiveness come under threat, if necessary we will act.”
She added: “That means companies can plan funding initiatives at this time, with the boldness of understanding how their returns can be taxed for the remainder of this decade.”
In spring 2021 the then-Chancellor Rishi Sunak announced a hike in corporation tax from 19% to 25% on profits of more than £250,000 by April 2023. During her short time as Tory leader Liz Truss attempted to scrap the measure – but was forced into a humiliating U-turn amid economic turmoil.
Even at the higher rate of 25% corporation tax in the UK is the lowest in the G7 – a group of the world’s seven richest nations.
Ms Reeves also promised a room of 400 bosses at Labour’s Business Conference in London “stability” as she comes under criticism for pledging not to restore the cap on bankers’ bonuses and the party’s wobbling over the £28 billion green investment commitment.
Keir Starmer, whose party has made considerable strides in reassuring and winning over company bosses and City investors in recent years, will promise Labour will “roll up our sleeves and get beneath the bonnet to repair an unprecedented stagnation in British productiveness development” in a speech in a while Thursday.
