Shadow Chancellor Rachel Reeves of the Labour Party has outlined plans to fund public services without raising income tax or National Insurance, targeting VAT exemptions for private schools and proposing a windfall tax on energy firms. Labour pledges a ‘fiscal lock’ for transparency and supports pro-business policies while advocating for workers’ rights reforms to ban zero-hour contracts and improve worker protection from day one.
Shadow Chancellor Rachel Reeves announced that, if elected, Labour will not raise income tax or National Insurance. She cited the need to enhance public services without resorting to austerity. Reeves outlined plans for funding through the removal of VAT exemptions for private schools and extending the windfall tax on energy firms. Labour intends to address tax avoidance and close non-dom loopholes as part of its fiscal strategy.
Reeves pledged a “fiscal lock” requiring independent financial forecasts for significant tax and spending changes. She also emphasized Labour’s alignment with pro-business policies, aiming to reassure middle Britain of sound economic management.
Reeves defended the party’s stance on “fire and rehire,” indicating it will be permissible only under narrowly defined bankruptcy circumstances. She also addressed the critique from Unite’s Sharon Graham, who argued that Labour’s workers’ rights reforms were insufficient. Labour’s New Deal for Working People includes banning zero-hour contracts and enhancing worker rights from the first day on the job.
Labour’s approach seeks a balance between necessary economic measures and protecting public services without perpetuating austerity.
