Rachel Reeves promises no rise in corporation tax under Labour government
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Shadow Chancellor Rachel Reeves has pledged to bring stability back
to the British economy as she announces no rise in the current 25
per cent rate of corporation tax during the first term of a Labour
government. The major announcement was made to 400 senior business
leaders at the Labour Party’s Business Conference in
London. In a keynote speech, the Shadow Chancellor
said: “economic growth is essential for raising living standards
and funding strong...Request free trial
Shadow Chancellor Rachel Reeves has pledged to bring stability back to the British economy as she announces no rise in the current 25 per cent rate of corporation tax during the first term of a Labour government. The major announcement was made to 400 senior business leaders at the Labour Party’s Business Conference in London. In a keynote speech, the Shadow Chancellor said: “economic growth is essential for raising living standards and funding strong public services, and growth in turn will rely on attracting business to invest and create jobs and prosperity here in Britain.” She accused the Conservatives of presiding over a decade of chaos and instability that has fuelled economic instability, with 26 changes to corporation tax since the last general election alone. The Institute for Fiscal Studies has described recent changes to corporation tax as a “long line of changes and temporary tweaks” and said there was “no stability, no certainty, and no sense of a wider plan.” The Confederation of British Industry has called for a tax system that can enable long-term planning to higher investment. Under plans unveiled by the Shadow Chancellor today, the next Labour manifesto will contain a commitment to capping the headline rate of corporation tax at its current rate of 25 per cent for the lifetime of the next parliament, monitoring the UK’s competitiveness and acting if needed. During her speech she also announced plans to maintain permanent full expensing and to publish a roadmap for business taxation in the first six months of a Labour government, setting out our plans on business tax for the parliament. Speaking at the party’s annual business conference, Rachel Reeves MP, Labour’s Shadow Chancellor of the Exchequer, said: “After 14 years of uncertainty under this Conservative government, investment has cratered. I have heard time and time again from businesses that what they want is stability – including when it comes to tax. And they are right. “If we expect business to invest in Britain, then tax rates cannot shoot up and down like a yo-yo, according to each political whim. What Labour offers is a genuinely pro-business tax plan. Founded on a fair contract between a pro-business government and great British business.” On Labour’s approach to business tax, she said: “Alongside that, will come a commitment from government: to ensure stability and competitiveness throughout our business tax system. “At the Make UK conference last year, I announced that Labour would conduct a review into how we can lock in stability, and incentivise investment, within our business tax system. Today I can announce the outcome of that review. “We have heard loud and clear the demand for clarity and certainty from business. So, we will maintain full expensing and the annual investment allowance. And within its first six months, an incoming Labour government will publish a roadmap for business taxation: setting out our plans on business tax over the duration of the parliament. But I want to go further.” On corporation tax, she said: “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 believe that 25 per cent rate strikes the correct balance between the needs of our public finances, and the demands of a competitive global economy. “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 per cent for the next parliament. And should our competitiveness come under threat, if necessary we will act. “That means businesses can plan investment projects today, with the confidence of knowing how their returns will be taxed for the rest of this decade. “To those you in this room who might be wondering – do we really mean what we say? Has Labour really changed? Will warm words today be matched by action in government? “Be in no doubt. We will campaign as a pro-business party – and we will govern as a pro-business party.” Ends Notes: Labour’s plan for business tax:
Conservatives’ record on business tax:
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