Angela Rayner has been undermined by Rachel Reeves today over her comments on Labour’s proposed economic policy.
Last week, the deputy leader of the opposition hit out at the Conservative Party after Rishi Sunak’s tax returns were released.
The Prime Minister’s tax rate sat at around 22 per cent due to most of his earnings coming from capital gains.
Capital gains are taxed at a lower rate than income.
Rachel Reeves insisted Labour would not increase capital gains tax
Rayner hit out at Sunak, saying his taxes revealed a tax system “designed by successive Tory governments in which the Prime Minister pays a far lower tax rate than working people who face the highest tax burden in 70 years”.
The comments threw confusion into the future of the party’s policy on economic reform.
Rayner’s comments suggested that the Labour Party planned increase tax rates.
Now, the shadow chancellor appeared to distance herself from Rayner’s vision.
Rayner hit out at Sunak after the release of his tax returns
Speaking to the BBC, Reeves said: “I don’t have any plans to increase capital gains tax.
“There are people who have built up their own businesses who maybe at retirement want to sell that business.
“They may not have had huge income through their life if they’ve reinvested in their business, but this is their retirement pot of money.
“And we also have said we want Britain to be the best place to start and grow a business.”
Sir Keir Starmer announced that Labour would freeze council tax bills.
It comes after Sir Keir Starmer announced that Labour would freeze council tax bills.
He made the announcement at the party’s campaign launch for the May local elections.
The Labour leader said: “A Labour government would freeze your council tax this year – that’s our choice. A tax cut for the many, not just for the top 1 per cent.”
He said the difference would be funded by a “proper” windfall tax on the profits of oil and gas giants.