Election 2024: Labour to rule out tax rises in ‘iron-clad’ manifesto pledge
Labour’s manifesto will contain an “iron-clad commitment” to rule out increases to national insurance, income tax or VAT, Rachel Reeves has revealed.
The shadow Chancellor told The Sun on Sunday: “Our manifesto will contain an iron-clad commitment to working people that there will be no increase in national insurance, income tax or VAT.”
It comes ahead of Labour’s manifesto launch later this week, expected to take place on Thursday, amid speculation she was under pressure to deliver a ‘revenue-raiser’ budget.
The Guardian reported Reeves was “looking at” some 10 to 12 measures “which she hasn’t yet announced, all of which will raise small pots of money”.
But making the tax ‘triple lock’ promise, Reeves also dismissed the Tories’ claims about Labour’s £2,000 tax rises, saying: “The Conservatives’ claims about our tax plans are lies.”
Writing in The Sun, she said: “Labour will stop the chaos and get on with the job of building an economy that works for Sun readers.
“Everything in our plans is fully funded and fully costed through the tax loopholes we would close. Nothing in our plans requires any new taxes.”
Reeves talked up the “economic potential” of the UK’s economy which she said was being “held back”, arguing Britain has “the brightest scientists working out of the best universities”.
The former Bank of England economist added: “I’m sick and tired of meeting chief executives and entrepreneurs who tell me they want to do more business in Britain but have been put off because of the constant churn at the top of government.”
The manifesto launch, she said, would be the “culmination of all that hard work” and a “serious plan for our country’s future” with “the first chapter of that plan… about delivering economic stability”.
Reeves said she wanted “taxes to be lower” but refused to promise tax cuts “without telling you where the money is going to come from or being able to guarantee it will be delivered”.
She likened the Conservative manifesto to “the approach Jeremy Corbyn took”, branding it a “fantasy manifesto that writes cheques we could never cash”, adding: “I totally reject it.”
While Starmer told Sky News on Saturday that there “won’t be surprises on tax”.
“All of our plans, fully costed, fully funded. And none of them involving tax rises over and above those that we’ve already set out.”
Laura Trott, chief Treasury secretary, said: “The question for Starmer and Reeves is clear: what are the 12 tax rises planned for later this year that Labour won’t put in their manifesto?
“Starmer has not only made promises that will hike up taxes on hardworking families by £2,094 to fill his £38.5bn black hole, but he and his shadow Chancellor are now also planning 12 secret tax rises which they are hiding from voters.”