UK's Reeves: We Don't Need a Standalone Wealth Tax

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00:00In the manifesto, you said, will not increase national insurance, the basic higher or additional rates of income tax or VAT.

00:07Yes or no, does that still hold?

00:08Yes, it does. And we also made that commitment around corporation tax as well.

00:12And those commitments stand. And they stand for a reason, because working people paid a heavy price in the last parliament.

00:18It was the worst parliament on record for living standards.

00:22It's still the biggest challenge for working people.

00:25So those commitments stand.

00:27But what I want your viewers to know, that my commitments to economic stability, to fiscal responsibility and to those fiscal rules,

00:34they absolutely stand because they are the bedrock of stability.

00:38And only with stability can we grow the economy.

00:40So we need to know where you're going to find the money from.

00:42The French are in a similar fiscal bind. They're seemingly on the brink of a wealth tax.

00:47Is it time for a mansion tax here in the UK?

00:50I would like to differentiate ourselves from what's happening in other countries around the world.

00:54We'll yield a higher here.

00:56Yes, but they have struggled to get a budget through.

00:59And we successfully got the budget through last year and the spending review.

01:04And many people said that wouldn't be possible because we had to make difficult decisions.

01:08But I'm up for difficult decisions when they are in their national interest.

01:11And I will continue to take them.

01:14We already taxed wealth in Britain with capital gains tax, with inheritance tax.

01:22The budget last year, as you know, we got rid of the non-domicile status in the tax system.

01:28We put VAT on the school fees.

01:31We increased taxes on private jets.

01:33We already have taxes on wealthy people in Britain.

01:36I don't think we need a standalone wealth tax.

01:38And in fact, countries that do have that don't have those other taxes.

01:41So I'm not even sure it would work.

01:43OK.

01:43And there's been growing concern in the city as well that you could target the banking sector for higher taxes.

01:48I think we probably shouldn't go through every single possible...

01:52What's your message to the city?

01:53I think that from both of my Mansion House speeches, the city know how much I value the contribution that they make,

02:00both through direct employment and investment, but also supporting the wider economy with an efficient allocation of capital.

02:06And the regulatory reforms that I brought in at the Chancellor are all about promoting growth and job creation

02:13and businesses coming to Britain in financial services.