UK opposition hints at wealth taxes on shareholders and landlords



© Reuters. FILE PHOTO: Labour politician Rachel Reeves speaks during a People’s Vote press conference at the National Institute of Economic and Social Research in London, Britain May 9, 2019. REUTERS/Henry Nicholls/File Photo

BRIGHTON, England (Reuters) – Britain’s opposition Labour Party hinted on Sunday at new taxes on wealth, identifying landlords and shareholders as possible targets if it won power at the next election.

Labour’s would-be finance minister Rachel Reeves used an interview before her speech at the party’s annual conference in Brighton to preview what she called “a fair tax system”.

“I do think that people who get their income through wealth should have to pay more,” Reeves told the Sunday Times, specifying “people who get their incomes through stocks and shares and buy-to-let properties”.

Conservative Prime Minister Boris Johnson is two years into what could be a five year term, after winning over many traditional Labour voters at the last election with a focus on finishing Brexit.

But the COVID-19 panic has forced his centre-right government to rapidly increase government spending and rack up debts that are likely to take generations to pay off.

A Labour government would look to shift that burden further towards the wealthy, Reeves said.

“We should use the tax system to ask those with the broader shoulders to contribute more,” she added.

Reeves also sketched out a set of fiscal rules that would govern Labour’s broad approach to public finances, including a commitment to reduce the debt to GDP ratio and balance day-to-day spending, albeit with new borrowing for capital investment.

See also  Cities where it's easiest to buy a house for less than $100K

“The purpose of having fiscal rules is to provide an anchor for government ministers and for civil servants, but also it can reassure the public and also markets that you’ve got a plan,” she said.

Between 2015 and 2019, Labour ran under a left-wing banner that unnerved financial markets with huge spending pledges, but now the party, led by the more-centrist Keir Starmer, is seeking to shape a more fiscally responsible image.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here