Tax cuts could be offered by Labour at next election, suggests shadow chancellor

Tax cuts could be promised by Labour at the next election, shadow chancellor Rachel Reeves has said.

In an interview with The Mirror newspaper, the Labour frontbencher hit out at the Tory leadership contenders, calling Rishi Sunak “thin-skinned” and criticising the “fantasy tax cuts” offered by Liz Truss.

Setting out some of Labour’s economic thinking, she was asked by the newspaper if Labour would offer tax cuts to rival the Conservatives.

“I would like working people to keep more of their money,” Ms Reeves said.

“And we are the only major economy that’s increasing taxes on working people right in the middle of the cost-of-living crisis. Economically that is absolute madness.

“We’ve said if you need more money for public services then why aren’t we asking those with the broader shoulders, so people who earn incomes from stocks and shares and dividends.

“So I think I have started to hint the direction of travel. But we’d set out the detail of that in an election.”

According to the paper, Ms Reeves would not commit to reversing the national insurance hike.

“We’d have to see what position the public finances are in at the next election,” she said.

The shadow chancellor also told the newspaper she would like public sector workers to get a pay rise, but stressed that: “The pay review bodies are independent.

“They’ve made that recommendation, and it’s now in the hands of workers to decide whether they are going to accept that or not.”

“I totally understand why public sector workers are angry,” she said.

“I’ve got to explain where that money is going to come from, which is why I’m so determined to get economic growth.”

It comes as Labour leader Sir Keir Starmer announced a mini-reshuffle of the Labour frontbench, with several changes in roles.

Chris Elmore becomes the parliamentary lead for the Labour Party chair while retaining his responsibilities as a whip.

Mr Elmore was previously the shadow minister for media, data and digital infrastructure.

Rachel Hopkins will move from her role as shadow minister for the Cabinet Office to become shadow minister for veterans.

Stephanie Peacock will move from her role as shadow veterans minister to replace Mr Elmore, while Kerry McCarthy will be the new climate change shadow minister.

Sir Keir said: “The more time we give the Tories, the more damage they will do. We have a plan to reboot our economy, revitalise our public services and re-energise our communities. Only Labour can provide the fresh start the country needs.”