Chancellor Rachel Reeves urges tax balance amid wealth‑tax debate.
UK Chancellor Rachel Reeves has spoken out today, saying the government must “get the balance right” regarding proposals for a new wealth tax. She acknowledged the pressure to raise more revenue, but cautioned that policy must be carefully calibrated to avoid harming economic growth and investment.
Her remarks come in the wake of increasing public debate and pressure from Labour party members for greater tax fairness. Former minister Anneliese Dodds had previously voiced support for a modest wealth levy targeting top earners—comments Reeves subtly referenced in her statement.
Reeves emphasized that social equity goals remain a priority for the government. At the same time, she urged caution against overly aggressive taxation that could push capital and entrepreneurship abroad. She proposed exploring a middle path: targeted reforms paired with targeted relief for growth sectors.
Reeves’s stance has drawn mixed reactions. Advocates of wealth tax praised her acknowledgement of inequality, while business groups warned any new levy could drive investment offshore. Reeves responded by calling for stakeholder dialogue and iterative policy design.
I’m Adedayo Obadina
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