Hunt and Reeves hint at tax cuts at Davos

Hunt and Reeves hint at tax cuts at Davos

Feb 1, 2024

Shadow Chancellor Rachel Reeves has hinted that a Labour government would consider tax cuts for all levels of earners during the Davos summit

Tax was also on the agenda for the Chancellor Jeremy Hunt who said he wanted to create a low level tax environment in the UK to compete with low tax economies like the US and Asia.

Reeves was questioned in Davos live on CNBC on whether the promises that most chancellors have made in the past when coming into the post could be upheld as they usually found that the accounts were much worse than assumed and taxes would in fact have to be raised instead.

Reeves said: ‘I know that the inheritance is going to be tough but if the route to better public services and higher living standards was through higher taxes, we’d have them by now because the tax burden is at a 70-year high and is indeed forecast to rise in each year of this parliament.’

She also told The Telegraph that ‘my instinct is to have lower taxes’, even hinting that this would extend to ‘earners above £100,000’.

The Chancellor Jeremy Hunt was also in Davos on 18 January, delivering a speech on economic growth. He also touched on taxes, stating: ‘I believe fundamentally that low tax economies are more dynamic, more competitive and generate more money for public services like the NHS.’

However, he did caveat this, adding that it was ‘too early to know the extent to which we’ll be able to cut taxes’.

The Budget will be held on 6 March. A date for a general election has been rumoured for November.