Afternoon summary
Updated
Starmer says Labour would prioritise stimulating growth over raising taxes as means of funding better services
Keir Starmer has told the Economist that a Labour government would prioritise stimulating growth over raising taxes. In an interview, asked if he accepted the tax burden needed rise to closer to the European average, to fund European-quality public services, he implied that he didn’t. He replied:
I resist the idea that the first place you go is tax, and I think that it’s very important for me to say that as leader of the opposition wanting to be the Labour prime minister, heading a Labour government. Because the instinct is always to think that’s where Labour wants to go first, and it isn’t because we’ve got to get economic growth.
I do think that through the model I’ve been describing we have the potential for that [growth] which doesn’t involve huge change to the tax regime. We have obviously set out some changes that we want to make: what we do about the non-dom status, which we said we would get rid of and use the proceeds to fund the expansion of the NHS workforce; the private-equity loopholes; private schools. So we’re prepared to say when we are looking at tax changes where we want to go.
Quite often we’re challenged on capital-gains tax. We don’t have plans actually on capital-gains tax. It’s important that I make that clear.
But I, and Rachel [Reeves], intend to resist the pull that so many people urge on us that the first place a Labour government goes is to tax. The first place the next Labour Government will go is to grow.