Labour unveils £40bn tax rises in bid to overhaul public services
Tax and spend to tackle climate change and 'level up' the country, says Rachel Reeves
Labour has unveiled plans to raise taxes by £40bn a year to fund a major overhaul of public services, including the NHS, education and social care. The party's shadow chancellor, Rachel Reeves, said the tax rises were necessary to "level up" the country and tackle the climate crisis.
Key points
- Labour plans to increase income tax, corporation tax and capital gains tax.
- The party says the tax rises are necessary to fund a major overhaul of public services.
- The plans have been met with mixed reactions from economists and business leaders.
The tax rises, which would be phased in over four years, would see income tax increase by 1p in the pound, corporation tax rise to 26% and capital gains tax increase to 20%. Labour also plans to introduce a new wealth tax on assets over £10m.
Reeves said the tax rises were "progressive" and would ensure that the wealthy "pay their fair share". She said the money raised would be used to fund a "green industrial revolution", improve the NHS and social care, and invest in education and skills.
The plans have been met with mixed reactions from economists and business leaders. Some have welcomed the investment in public services, while others have warned that the tax rises could damage the economy.
Labour's tax plans are likely to be a key battleground in the next general election. The party is hoping that the public will support its plans to increase taxes to fund public services, while the Conservatives are likely to argue that the tax rises would damage the economy.
The tax rises are part of Labour's wider plans to "level up" the country and tackle the climate crisis. The party has pledged to invest in infrastructure, education and skills in order to create a more prosperous and sustainable economy.
Labour's plans are ambitious and would represent a significant shift in tax policy. It remains to be seen whether the public will support the tax rises and whether Labour will be able to deliver on its promises to improve public services.
