Labor has been branded ‘shameful’ for ruling out a wealth tax if elected

The SNP questioned the whole spirit of the Labor Party.

Ms Reeves, who said in 2021 that people earning their income through wealth would have to pay more tax, used an interview with the Sunday Telegraph to announce the change.

She said she would not introduce a wealth-targeting levy, a property-targeting “mansion tax,” nor increase capital gains tax or the top rate of income tax.

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Sir Keir Starmer had previously promised to “raise income tax for the top 5% of earners” but appeared to back down in June when he said he was no longer enthusiastic about the idea.

The changes aim to lure in business and wealthier voters and stave off potential Tory attacks on Labour’s financial irresponsibility.

The Labor leader and his chancellor-to-be believe Labor will need to demonstrate economic savvy if they are to convert their 20-point lead in a poll in the House of Commons.

Ms Reeves said: “We have no plans for a wealth tax.

“We have no plans to increase taxes beyond what we have said.

“I don’t see taxation as the way to prosperity. I want to grow the economy.”

Regarding any form of wealth tax, she said: “We will not do that. That is a rejection.”

A Labor source told the Telegraph that this also applies to “any form of ‘mansion tax'” which has also been debated by Labor in recent years.

When asked if the party had abandoned Sir Keir’s 2020 promise to increase the top rate of income tax, Ms Reeves replied: “Yes. The tax burden is at its highest level in 60, maybe even 70 years.”

“I don’t see a way to get more money for public services by taxing our way of getting there.”

“We will make it by evolving towards it.

“And that’s why the guidelines that we’ve put in place are very much about how we can encourage companies to invest in the UK.”

She also pledged to do “whatever is necessary” to attract green investment and jobs to the UK from firms such as electric car manufacturers and the factories that supply them with batteries.

Left-wing advocacy group Momentum said on Twitter/X: “Four people in this country have more wealth than *20 million Brits*.”

“Capital gains are now taxed less than income. This is a political decision to favor big business and the 1% over ordinary people. Shameful.”

The SNP said Labor is now a pro-Brexit party, leaning more towards the Conservatives.

MP Stewart Hoise said: “Keir Starmer’s tax turn underscores how indistinguishable they are from the Tories.”

“In its desperate attempt to appeal to Tory voters, Labor Party tax policy is now based directly on the Tory Manifesto.

“This latest capitulation now means that the Labor Party and the Tories are at odds over taxation, the two child cap, the rape clause, the bedroom tax, Brexit, the undemocratic House of Lords and Scotland’s right to decide about its own future decide, agree

“Voters across the UK will now rightly be asking: What is the point of the Labor Party?”

“In the next election, a vote for the SNP is a vote that brings real change and real hope – and sends a clear message to Keir Starmer that being a conservative tribute act will not be enough.”

READ MORE: Labor and Liberal Democrats both claim they could beat the Tories if Dorries leaves

A spokesman for the Conservative Party said: “Once again, Rachel Reeves thinks the British people are stupid if they think they will believe this latest reversal.”

“Labour’s reckless spending and its £28 billion-a-year borrowing plan would crash the economy, fuel inflation and inevitably result in higher taxes for the British people. As always with Labour, hard working people would be forced to foot the bill for their disastrous economic policies.

“We set out to meet people’s priorities: halve inflation, grow the economy, reduce debt, reduce waiting lists and stop the boats.”

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