Labour’s 25 % Stance: Keeping the Tax Yo‑Yo Tight
Rachel Reeves, Labour’s Shadow Chancellor, just gave a pitch‑in‑the‑pit to a room full of London bosses. She promised that the party won’t lift the corporation tax to keep the country competitive, and that any future changes would come with a clear, fixed ceiling.
Why 25 % Is “the Right Balance”
- Reeves claims our current rate remains the sweet spot between a healthy fiscal plan and staying in the hunt for global business minds.
- She says, “If the UK’s competitiveness gets nudged, we’ll look again.” In other words, 25 % is a soft cap, not a permanent lock.
- Unlike the Conservative “hey‑let‑’em‑roll” approach, Labour wants a stable footing for profits.
One‑Way Ticket to Business‑Friendly New Leadership
In the moment, Reeves spoke to a crowd that did not want yarns about “easy‑money” cuts. Instead, she promised:
- A clear tax roadmap within six months of the next election—so executives know where the money line is headed.
- Full expensing and the annual investment allowance remain in place.
- A competition‑check system that keeps the tax circle tight while we make a big name for ourselves again.
We’re Pro‑Business and That’s the Game Plan
Reeves was clear: “We’re not selling the idea that profits are evil.” She pitched that businesses can keep on making cash as long as everyone knows the rules. With that certainty, she’s saying no yo‑yo tax hikes—just steady, predictable math.
What It Means for Us
- Expect predictability: no surprise spikes when the next government flips.
- Expect a two‑fold boost for investment every tax season.
- Expect all the new policy talk to revolve around one question: “Got the money? “ — the answer will always be Yes.
Bottom line
Labour’s light‑bulb moment is: keep the tax at 25 % for now. Keep it stable for future competitors, and let the UK’s business feel like it’s in the friend zone—no guy walking away with the profits.
