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The Conversation
The Conversation
Alan Shipman, Senior Lecturer in Economics, The Open University

Why the new government is staying silent about the City – it won’t get tough on the UK’s financial sector anytime soon

The financial sector contributes huge amounts to the UK economy. Sven Hansche/Shutterstock

Rachel Reeves’ first speech as the UK chancellor highlighted the financial constraints the new Labour government faces. With taxes already at a 70-year high in relation to national income, she repeated the pledge of no increases in national insurance, income tax or VAT.

A parallel pledge to stand by present fiscal rules, requiring public debt to be falling within five years, leaves Reeves looking for ways to target taxes.

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