Rachel Reeves vows income tax and National Insurance will not rise under Labour for at least 5 years

Rachel Reeves vows income tax and National Insurance will not rise under Labour for at least 5 years

WATCH: Shadow Chancellor Rachel Reeves on her economic strategy should Labour win the General Election

GB News
Christopher Hope

By Christopher Hope


Published: 28/05/2024

- 18:01

Updated: 28/05/2024

- 20:48

The Shadow Chancellor is pushing ahead with other tax increases, including a VAT charge on private schools

Additional reporting by Jack Walters

Shadow Chancellor Rachel Reeves has promised Labour will not increase income tax or National Insurance if Sir Keir Starmer wins the upcoming general election.

Speaking to GB News at Derby's Rolls-Royce plant, Reeves categorically ruled out hiking the levies and insisted Labour wants to lower the burden facing British taxpayers.


She said: "I want taxes on working people to be lower. But I'm not going to make commitments without saying where the money is going to come from.

"But I can make a commitment that Income Tax and National Insurance won’t go up under a Labour government, the whole five years of the next Parliament."

Rachel Reeves vows income tax and National Insurance will not rise under Labour for at least 5 yearsRachel Reeves vows income tax and National Insurance will not rise under Labour for at least 5 yearsGB NEWS
Christopher Hope spoke to Rachel Reeves in Derby

Christopher Hope spoke to Rachel Reeves in Derby

GB NEWS

Reeves remarks come as Labour continues to refuse to make any unfunded commitments.

However, Starmer is keen to increase some levies, including VAT on private school fees.

Despite Reeves' reassurances, the Conservative Party continue to warn voters about a potential tax raid.

Rishi Sunak claimed Labour's plans will cost "every working family" £2,000 each.

Rachel Reeves

Shadow Chancellor Rachel Reeves

PA

Labour has pledged to recruit thousands of additional teachers and introduce 40,000 NHS appointments every week.

Charging VAT on private school fees; the reintroduction of the lifetime allowance on pension savings; higher taxes on non-dom, private equity bonuses and the profits of energy companies are expected to raise something in the region of £8billion a year.

The Tories have made two cuts to National Insurance Contributions in recent years, with Chancellor Jeremy Hunt pushing to scrap the levy when circumstances allow.

Work & Pensions Secretary Mel Stride was also keen to point out that Reeves was unable to match Rishi Sunak's plan to increase personal tax thresholds for pensioners.

Rishi SunakRishi SunakPA

Stride said: "Rachel Reeves confirmed this morning that pensioners will pay the Retirement Tax under Labour.

"Labour will not match our commitment to increase personal tax thresholds for pensioners and will instead raise taxes by £2,094 on hardworking families.

"They do not have the courage or conviction to name a single tax they would cut.

"Only Rishi Sunak and the Conservatives have a clear plan, backed by bold action, to end the double tax on work and ensure pensioners who have worked hard their entire lives will have a new tax-free threshold to protect them."

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