Britain’s Labour Party will not increase value-added tax if it wins an election on July 4, its finance spokesperson Rachel Reeves said, after Conservative finance minister Jeremy Hunt said Labour had not clearly ruled it out.

Hunt, in an article for Thursday’s Daily Telegraph, said the Conservatives would not raise VAT over the course of the next five-year parliamentary term if they remained in power, and said Labour had not given the same commitment.

It comes as Western nations discuss whether to let Kyiv use weapons provided by them to strike targets inside Russia.

“This is absolute nonsense. Labour will not be increasing income tax, national insurance, or VAT,” Reeves – who hopes to replace Hunt as finance minister – said in response.

VAT is charged at a rate of 20% on most goods and services in Britain and is the government’s second largest source of tax revenue, behind income tax, raising 198 billion pounds ($252 billion) in the year to the end of April.

In an interview with Sky News on Tuesday, Reeves said a Labour government would not raise either income tax or national insurance “for the duration of the next parliament”

Leave a Reply