Labor will not cut personal taxes on millions until the economy starts to grow more strongly, the shadow business secretary has warned.
Although corporation tax has been capped at 25 per cent during the first five years of a Labor government, shadow business secretary Jonathan Reynolds said any personal tax cuts would have to wait until the economy showed strong growth.
According to the International Monetary Fund, the UK will grow by just 0.6 per cent this year and 1.6 per cent next year.
Mr Reynolds told GB News: “Taxes are high at historic levels, and people are not getting great public services as a result…
Jonathan Reynolds said any personal tax cuts would have to wait
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“Why do people pay high taxes for bad services? Because the economy has not grown.
“So I would love to be able to tell you that people will pay less in taxes, and I would love to be able to give you guarantees on any aspect of the tax system.”
But he added: “I can’t because until the economy grows stronger.
“People need to understand, compared to the history of the UK, that the last decade and a half has been very slow, very low productivity, very low business investment.
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Jonathan Reynolds is the Shadow Business Secretary
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“Different spurts of growth but nothing like the kind of significance we normally expect around that, which is why everything we’re talking about today, planning for reform, changing the apprenticeship tax, making the deal with the EU work better from a trade perspective, getting a new deal for working people. Green prosperity plan for public investment.
“It’s all about the economy growing stronger, and hopefully providing people with better services, better wages, and hopefully reducing those burdens and time on them.”