Rachel Reeves hit out at ‘unproven’ wealth taxes today amid fresh Labour demands to soak the rich.
The Chancellor insisted there is no certainty about what revenue a new levy would bring in as she was confronted by an MP in the Commons.
Ms Reeves is under huge pressure to find a way of balancing the books as the Budget looms on November 26.
There have been warnings that the gap in the public finances could be as big as £50billion amid the slowing economy, rising debt interest costs and calls for more spending.
Businesses have been increasingly voicing alarm about the impact of Labour’s policies, including the national insurance hike and employment rights’ overhaul.
Rachel Reeves hit out at ‘unproven’ wealth taxes today amid fresh Labour demands to soak the rich
Markets have been pushing up the interest rates on government borrowing over recent weeks in a sign of doubts that Ms Reeves will take tough action.
Asked by Labour MP Steve Witherden whether she will protect working people by taxing the wealthy, and avoid ‘regressive’ spending cuts, Ms Reeves replied: ‘Some countries around the world do have a wealth tax, but countries like Switzerland for example don’t have inheritance tax.
‘I think it would be a mistake to get rid of inheritance tax and replace it with an unproven tax without knowing what revenue it would bring in.’
Emily Thornberry listed a wealth tax as one of her key issues as she declared her candidacy for Labour’s deputy leadership.
It is unclear what form one would take, but some senior figures have proposed a 2 per cent levy on assets of over £10million – claiming that could raise billions of pounds for the Treasury.
Earlier Ms Reeves briefed the Cabinet on the economic situation, talking up the need to bolster growth.
Markets have been pushing up the interest rates on government borrowing over recent weeks in a sign of doubts that Ms Reeves will take tough action
‘The entire autumn, and beyond, must be about growing the economy in a way that makes working people better off and provides the revenues we need to fund our public services,’ the Chancellor said, according to a No10 readout.
She said the Government would ‘deliver economic stability and public investment so that consumers have the confidence to spend and businesses have the confidence to invest’.
Ms Reeves acknowledged here was more the Government ‘must do to attract international investment, drive jobs and growth across the country, get Britain working, back the builders and not the blockers, and buy British’.
