Rachel Reeves’s mission to woo affluent voters with its new tax approach will strain Labour

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Rachel Reeves’s mission to woo affluent voters with its new tax approach will strain Labour
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To minimise the perception of Labour as a tax-and-spend party, the wealthy would not end up paying more

In truth, under the present proposals to stick to Tory spending plans and minimise the perception of Labour as a tax-and-spend party, the wealthy would not end up paying more at all. Proposed measures like restrictions on second homes’ council tax offsets are small beer in comparison to hitting the well-heeled with a tax cosh.

Reeves and Keir Starmer are ditching a sturdy centre-left assumption that raising more levies on earnings, property or wealth is the key to better funding of public services. “I don’t see a route towards having more money for public services that is through taxing our way there,” said Reeves. But the bullseye target here is the perception that with Reeves in Number 11, economic competence will be restored, without the risk of a “tax bombshell”. Sunak-era optimism about inflation-busting is not landing well with affluent folk worrying about their mortgages. Talking to a lending adviser at the weekend, she tells me she has “never been busier” with worried clients trying to guess the outlook for interest rates and find deals they can sustain.

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