Labour Vows No Tax Hikes and Promises Public Service Cash Boost: Reeves Outlines Economic Strategy Ahead of Election

Labour vows no hikes in national insurance or income tax, with Reeves committing to financial 'boost'

The shadow chancellor for Labour, Rachel Reeves, has expressed the party's intention to reduce taxes for the working class and has promised additional funding for public services. She assured that her proposals are completely financed.

Political correspondent Alix Culbertson

Sunday, May 26, 2024, 3:

Labour has dismissed the idea of raising income tax or national insurance should they secure victory in the upcoming election.

Shadow Chancellor Rachel Reeves stated that she, along with Labour Leader Sir Keir Starmer, aims to reduce tax rates for the working class, though she emphasized that she would not propose any financial plans without secure funding.

Ms. Reeves stated, "Our strategies do not involve raising taxes."

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She expressed reluctance to reduce government spending, yet she admitted that she could not make any promises and noted that a review of expenditures would be necessary if she were to oversee the Treasury.

She stated: "Our goal is to reduce taxation for worai-allcreator.com">king individuals and we are committed to not raising the levels of income tax or National Insurance for any income brackets."

"We aim to reduce taxes for working individuals, but unlike the Conservatives, I commit to not making promises that haven't been thoroughly evaluated and financed."

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"People will only trust your promises if they are thoroughly budgeted and financially backed."

She declined to provide a specific timeline for when Labour would boost defense expenditure to 2.5% of GDP, as pledged, but noted that it would occur "as soon as feasible."

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Ms. Reeves recently assured that a Labour government would not revert to austerity measures, and she pledged to enhance frontline services as an initial investment in the reforms they plan to implement.

"Ultimately, our focus must be on expanding the economy and reversing these troubling economic trends," she explained during her appearance on the BBC's Sunday With Laura Kuenssberg show.

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The shadow chancellor announced that there would be a "swift infusion" of funds into public services, including increased funding for the NHS, additional police officers, and more teachers.

She argued that it would be financed by making sure individuals with non-dom status contribute a just amount of taxes and by intensifying efforts to combat tax evasion.

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Labour plans to impose VAT and business rates on private schools in order to fund the hiring of 6,500 new teachers for state schools, she explained.

She emphasized that Labour intends to put a stop to the practice of "fire and rehire," where businesses dismiss their employees only to rehire them under less favorable terms.

The Unite union expressed disappointment with Labour for not committing to a complete prohibition of the practice, but Ms. Reeves assured, "We will not permit that to occur."

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