Labour rules out wealth taxes if it wins next election in major departure from Corbyn-era policy

27 August 2023, 20:45 | Updated: 27 August 2023, 23:33

Labour will not create any new wealth taxes if it wins the next general election, the shadow chancellor has confirmed.

Rachel Reeves has ruled out additional expensive property taxes - and committed to not raising capital gains tax and the top rate of income tax.

Read More: Business interest in Labour conference soars, party says

The shadow chancellor told the Sunday Telegraph: "I don't see the way to prosperity as being through taxation," but added that she would do "whatever it takes" to attract business investments as a route to economic growth.

Ms Reeves told the newspapers that her party's preparations for a general election that they are expected to win have included "spending an awful lot of time with businesses".

The party has been at pains to regain credibility in its potential handling of the economy in a departure from Corbyn-era policies which were attacked as being unfeasible.

Pro-Corbyn pressure group Momentum slammed the plans.

The group tweeted: "Wealth taxes are hugely popular. This is a Labour Leadership in hock to corporate interests."

Labour Party chair Anneliese Dodds defended the declaration by Ms Reeve on BBC Radio 4.

Ms Dodds, herself a former shadow chancellor, said her party wanted to be "very careful with tax policy" after "economic chaos" she says was caused by Liz Truss's 'mini-budget' which sent market tumbling in autumn 2022.