RACHEL Reeves has vowed to reinstate the top rate of income tax and use it to fund the NHS if Labour wins the next election.
In a keynote speech at the party’s annual conference in Liverpool today, the Shadow Chancellor blasted her Tory counterpart for promising “a tax cut for the wealthiest one percent”.
Rachel Reeves told Labour conference that her party will reinstate the top income tax rate and use it to fund the NHS
Last week in his mini budget bonanza, Kwasi Kwarteng revealed that basic income tax will be slashed by 1p next April, in a move that will save 31 million people £170 a year.
The Chancellor also confirmed that the 45 per cent top rate of tax will be scrapped at the same time.
The rate is paid by Brits who earn over £150,000 a year.
The government argues that by slashing it, big businesses will be more likely to move their staff to Britain, in turn growing the economy and benefiting working people.
But Labour argues the tax scrap is a gift to the rich and won’t have any benefit on low income households.
Ms Reeves pledged to reinstate the top rate if made Chancellor, and use the money it raises to double the number of medical school places from 7,500 to 15,000.
The tax would also pay to double the number of qualifying nurses every year, train 5,000 more health visitors and create 10,000 extra nursing and midwifery placements.
The Shadow Chancellor said: “We need strong, sustainable public finances alongside strong, sustainable public services.
“So, our priority is not tax cuts for the wealthiest few.
“It is securing our public finances and investing in our public services.
“I can tell you: with a Labour government, those at the top will pay their fair share.”
Ms Reeves also pledged that Labour would completely scrap business rates and replace it with “a new system of business taxation fit for the 21st century”.
