In its most ambitious attempt to woo a trade vote, Labor has announced plans to lower trade rates and shift the tax burden away from brick-and-mortar companies and onto Internet giants like Amazon.
Shadow Chancellor Rachel Reeves will set out the plan in a keynote speech at the party’s convention in Brighton on Monday in which she denies Conservative claims on the business vote, describing Labor under Keir Starmer as “pro-worker, pro-business”. Will challenge
It will also announce plans to raise £2.1 billion from online giants such as Amazon, Google and Facebook with a one-year hike in the digital services tax to pay for an immediate freeze on trading rates. Relief in the range from £15,000 to £25,000.
Labor will review the £174bn-a-year relief and scrap those that fail to deliver for taxpayers or the economy, she will say.
The announcement is part of a push by Reeves to establish Labor as a pro-business party and to shake off its reputation over the Jeremy Corbyn years.
Ms. Reeves would say: “Our high street businesses do so much to enrich our lives and our communities, having faced enormous adversity over the past year. They are struggling right now with the rate relief coming in March .
“The next Labor government will eliminate trade rates.
“We will be doing the biggest overhaul of business taxation in a generation, so that our businesses can lead the pack, not look for opportunities elsewhere.”
The move came to fruition today as the Federation of Small Businesses described its rate promise as “what a small-business tax policy looks like” and the CBI lauded a “pro-growth, pro-investment package of reforms”.
Highlighting her background as a Bank of England economist, Ms Reeves has also announced new financial rules that require a Labor chancellor to balance day-to-day spending and borrow only for capital investment. required, the party would have to commit to reducing the national debt proportionately. of national income.
An office for money will examine spending proposals on behalf of the taxpayer.
And it signaled a move toward a property tax, declaring that those who receive income from stocks, shares and rental income would be targets of a tax increase.
But Sir Keir said on Sunday that Labor was not ruling out a rise in income tax after Ms Reeves told Sunday Times He had no plans to raise rates.
The party leader said the income tax hike is not being considered at present, but “nothing is incomprehensible”.
Ms Reeves said “the biggest overhaul of business taxation in a generation” was needed as the UK’s old system currently pays retailers £2.30 in business rates for every £1 in corporation tax, e-commerce Huge payouts in favor of and against brick-and-mortar business.
With eight tech giants avoiding an estimated £1.5bn tax a year, aides said the system was not only unfair to small businesses but was also destroying Britain’s city centres, with shoppers in many areas Nearby was the option of “Amazon or nothing”.
Credit: www.independent.co.uk /