Labour accused of 'taking public for fools' after U-turn on wealth tax

Labour is accused of ‘taking the public for fools’ after U-turning on its pledge for a wealth tax

• Shadow Chancellor Rachel Reeves confirmed the ruling out of any wealth tax
• Conservative spokesperson said Labour’s spending pledges were ‘reckless’

Labour was accused of ‘taking the public for fools’ yesterday, after U-turning on a core tax pledge.

Shadow Chancellor Rachel Reeves has now ruled out any version of a wealth tax, despite leader Sir Keir Starmer previously pledging to increase the 45p top rate of income tax for high earners.

Ms Reeves confirmed the tax hike is off the table, as is a levy to target wealth or expensive properties and an increase in capital gains tax.

‘I don’t see a route towards having more money for public services that is through taxing our way there,’ she told the Telegraph. ‘It is going to be through growing our way there.

‘And that’s why the policies that we’ve set out are all about how we can encourage businesses, big and small, to invest in Britain.’

Shadow Chancellor Rachel Reeves (pictured left) has now ruled out any version of a wealth tax, despite leader Sir Keir Starmer (pictured right) previously pledging to increase the 45p top rate of income tax for high earners

It is the latest in a line of leadership commitments ditched by the Leader of the Opposition, having already reneged on pledges to abolish tuition fees, get rid of Universal Credit and commit to a flagship green investment plan.

Last night a Conservative Party spokesman said: ‘Rachel Reeves is yet again taking the British people for fools if she thinks they will believe this latest U-turn.’

Labour’s spending pledges were ‘reckless’, the spokesman added, citing the party’s now-ditched £28billion a year borrowing plan to support green jobs, and its net zero targets.

He added: ‘As ever with Labour, hard-working people would be forced to foot the bill for their disastrous economic policies.

‘We are getting on with delivering on the people’s priorities: Halve inflation, grow the economy, reduce debt, cut waiting lists, and stop the boats.’

Ms Reeves’ words also prompted a backlash from Momentum, the radical Left-wing pressure group that propped up Jeremy Corbyn during his time as Labour leader.

The organisation wrote on social media site X, formerly known as Twitter: ‘Four people in this country have more wealth than 20million Britons.

‘Meanwhile, capital gains are taxed lower than income.

‘This is a political choice to favour big business and the 1% over ordinary people. Shameful.’

Last night a Conservative Party spokesman said: ‘Rachel Reeves (pictured) is yet again taking the British people for fools if she thinks they will believe this latest U-turn’

Ms Reeves said Labour had attracted a surge of interest from business at its annual conference in October, and claimed the increased corporate presence demonstrates it is now the ‘party of economic growth’.

Sir Keir is expected to use this year’s conference in Liverpool to set out how a government led by him would revive a sluggish economy, with planning reforms central to the party’s bid to build its way back to economic growth.

The Labour leader, who is stepping up his efforts to woo business chiefs ahead of a likely general election next autumn, has indicated income tax for top earners will not be raised if his party forms the next government.

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