(Alliance News) - The UK Labour party will not hike the rate of corporation tax during its first term, shadow chancellor Rachel Reeves said as she promised to be "pro-business".
Reeves said on Thursday that the current 25% level "strikes the correct balance" but hinted that she could even cut it if the UK's "competitiveness comes under threat".
She also promised a room of 400 bosses at Labour's business conference in London "stability" as she comes under criticism for pledging not to restore the cap on bankers' bonuses and of weakening the GBP28 billion green investment commitment.
Keir Starmer, whose party has made considerable strides in reassuring and winning over company bosses and City investors in recent years, will promise Labour will "roll up our sleeves and get under the bonnet to fix an unprecedented stagnation in British productivity growth".
First, in her keynote speech, Reeves said: "We reject the calls from those on the right wing of the Conservative Party to cut corporation tax. Our current rate is the lowest in the G7.
"We believe that 25% rate strikes the correct balance between the needs of our public finances, and the demands of a competitive global economy.
"The next Labour government will make the pro-business choice and the pro-growth choice: We will cap the headline rate of corporation tax at its current rate of 25% for the next parliament. And should our competitiveness come under threat, if necessary we will act.
"Be in no doubt. We will campaign as a pro-business party – and we will govern as a pro-business party."
Reeves also vowed to maintain other favourable terms for businesses.
"We have heard loud and clear the demand for clarity and certainty from business," she said.
"So we will maintain full expensing and the annual investment allowance. And within its first six months, an incoming Labour government will publish a roadmap for business taxation, setting out our plans on business tax over the duration of the parliament. But I want to go further."
By Sam Blewett and Dominic McGrath, PA Political Staff
Press Association: News
source: PA
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