Labour sets out tax plans

Shadow Chancellor details Labour’s tax ambitions Shadow Chancellor Rachel Reeves says she wants to create a new “fair tax system” and confirmed that she is looking to increase capital gains tax to target those “who get their incomes through stocks and shares and buy-to-let properties”. Outlining Labour’s plans for tax reform if the party wins power, she said a Labour government would freeze business rates next year before going on to abolish the rates altogether as the system is neither “fair” nor “fit for purpose”. Alongside the initial freeze, SMEs would see rates cut, with an increase in digital taxes covering the cost of increasing he threshold for small business rates relief. Ms Reeves added that Labour would have a “laser focus” on efficiency in the tax system, with tax breaks that fail to deliver for the economy or taxpayer to be scrapped. Ms Reeves also used her speech at the Labour party conference to hit out at large online firms such as Amazon for paying less in tax than high street businesses, urging the Government to increase the digital services tax to 12% for the next year to make sure online companies are paying their fair share. The Shadow Chancellor also insisted that Labour has “no plans” to increase income tax, despite party leader Sir Keir Starmer having said the move is not “off the table”.