Labour has a ‘serious plan to grow the economy’, says shadow chancellor

Rachel Reeves stated that the Chancellor is determined to bring down taxes before the next election. However, she believes that cutting inheritance tax, which benefits less than 4% of estates each year, is an unusual way to tackle the cost of living crisis. She supports lower taxes on working people but wants the government to explain where the money will come from. Regarding spending, Reeves acknowledges the challenge she would inherit if she became Chancellor. She believes that growing the economy is the sustainable way to get more money for public services. Labour plans to get rid of the non-dom tax status and use that money for the national health service and breakfast clubs at schools. They also aim to eliminate tax breaks for private schools and invest that money in state schools. When asked if she would stick with the Conservatives’ spending plans, Reeves mentioned some changes Labour would make, such as alterations to private equity tax and using the money for public services. She emphasized the difference between Labour’s plan to grow the economy and the Conservatives’ plans. Labour’s reforms include changes to the planning system, a modern industrial strategy, and a national wealth fund to invest in future growth opportunities. Reeves stated that short-term increases in tax revenue and growing the economy are key to funding public services. She believes that by implementing their plans, Labour can generate economic growth and have money to invest in public services. Reeves discussed Labour’s plan to increase housing stock by building 1.5 million new homes over the next parliament. She mentioned unlocking the planning system, bringing back housing targets, and supporting builders to achieve this goal.

Home Ownership and Planning Reform

Home ownership is now falling and it is no longer the conservatives, but the labor party that is promoting home ownership. The goal is to help more young people and families get on the housing ladder. To achieve this, housing targets need to be reintroduced and builders should be allowed to build more freely. Without these measures, people’s dreams and aspirations of owning a home will not be fulfilled.

Reforming the Planning System

The planning system needs to be reformed, not just for housing, but also for national significant infrastructure projects such as energy, rail, and roads. These reforms are crucial because they are currently hindering growth. The following steps will be taken to speed up planning and the building of houses:
  • Bringing back targets
  • Reducing litigation opportunities
  • Providing more guidance to local authorities
  • Increasing the number of planners
  • Implementing a higher rate of stamp duty on properties purchased by foreign owners to fund the changes
The changes to the planning system will unlock investment and have been welcomed by house builders.

Cost Neutral Reforms

While specific details of tax reforms have not been provided, the aim is to lower taxes on working people. High taxes contribute to the cost of living crisis, resulting in higher mortgages, rents, energy prices, and taxes. Lowering taxes on working people is a principle for the labor party.

Economic Stability and Responsibility

Building on the economic stability achieved during the early years of the Bank of England’s independence, the labor party aims to strengthen the powers of the independent Office for Budget Responsibility. This will prevent future governments from overriding the office’s forecasts and ensure accountability in public finances.

Protesting vs Intimidation

While the labor party supports the right to protest, they condemn any form of intimidation. Recent protests outside the homes and offices of MPs have crossed the line from protest to intimidation. It is considered anti-democratic to pressure or intimidate elected representatives to vote in a certain way. The labor party urges protesters to act responsibly and not resort to intimidation or pressure tactics.

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