Rachel Reeves, the Shadow Chancellor, has dismissed the advice of one of her own advisers who urged her to keep the £28 billion green pledge. Juergen Maier, the former boss of Siemens, warned that the UK would face a steep decline without investing at least £28bn per year in eco projects. When asked if she agreed with him, Reeves firmly replied that he was advising on transport policy. Maier is currently chairing a review of UK rail and transport infrastructure for Labour.
Labour's Business Conference
Reeves' comments came after she addressed 400 business leaders at Labour's business conference, where she stated that her party would not increase the rate of corporation tax during its first term in government. She pledged to cap the headline rate of corporation tax at its current rate of 25% for the next parliament, with the possibility of acting if the country's competitiveness is under threat. Reeves also promised to maintain full expensing and the annual investment allowance for businesses and to publish a roadmap for business taxation within the first six months of a Labour government.
Tough Media Grilling
The Shadow Chancellor faced tough questions from the media regarding the recent pledge not to restore the cap on bankers' bonuses and the potential weakening of the £28bn green investment commitment. Last month, it was reported that Labour is scaling back the spending on eco projects, with a formal announcement expected after the March Budget. When pressed about a potential U-turn, Reeves emphasized her commitment to fiscal and economic stability. She also rejected the idea that pledging the £28bn was a mistake, stating that when she made the announcement in 2021, she also outlined Labour's fiscal rules and that any investment would be subject to those rules.
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