Tax  

McDonnell: Labour to shift tax burden from income to wealth

McDonnell: Labour to shift tax burden from income to wealth

Labour would shift the burden of Britain’s tax system away from income and towards wealth if it won the next general election, John McDonnell has said.

Speaking at the Labour Party Conference in Liverpool today, the shadow Chancellor of the Exchequer said he wanted the rich to pay more tax.

He also said his party would crack down on tax avoidance if it won power.

Article continues after advert

Mr McDonnell said: “The next stage of our work will be to develop the legislation and international agreements needed to close tax havens and end tax abuse.

“I’ll give you this assurance that when we go back into government, we’ll make sure HMRC has the staffing, the resources, and the legal powers to close down the tax avoidance industry that has grown up in this country.

“But we have to do more than stop tax avoidance. The burden of taxation as a whole now falls too heavily on those least able to pay.

“So let me make it clear: in this coming period we will be developing the policies that will shift the tax burden more fairly, away from those who earn wages and salaries and onto those who hold wealth.”

He said Labour would create a tax enforcement unit at HMRC, doubling the number of staff investigating “wealthy tax avoiders”.

The MP for Hayes and Harlington also said he wanted to work with financial services to make sure the Brexit deal worked for the sector.

He said: “At the centre of negotiations is Britain’s financial services industry.

“Our financial services have been placed under threat as a result of the vote to leave. Labour has said we will support access to European markets for financial services.

“But our financial services must understand that 2008 must never happen again. We will not tolerate a return to the casino economy that contributed to that crash.

“We will support financial services where they deliver a clear benefit to the whole community - not just enriching a lucky few.

“We’ll work with the finance sector to develop this new deal with finance for the British people.”