Tony Blair's business secretary was talking to i's new podcast Labour’s Plan For Power
ExclusiveLord Mandelson was business secretary under Tony Blair. Rachel Reeves gives her speech at the Labour Party conference in Liverpool last monthshould not go into the next election planning tax rises as it would send the “wrong signal” to voters and businesses, former Cabinet minister
Lord Mandelson, the architect of New Labour who masterminded the party’s landslide 1997 election victory, said: “If we go into the next election saying that we’ve got this very ambitious growth goal and it’s going to be financed by taxing people more, I think that will send the wrong signal to voters.
“We can do some of that, we need to have skin in the game as a government. We need to oil the wheels as a government, we need to reduce the risks for private investors and we have to create incentives.”“We’ve got to lower the costs of compliance by business with, you know, all the box ticking that goes on.Ms Reeves, who in August confirmed Sir Keir Starmer’s leadership pledge to increase the top rate of tax was now ditched, told the podcast: “Taxes today are at a 70 year high in the UK.
“The current government plan is to cut capital spending across the piece over the next period,” he said.“And outside of green investment, Labour I think is broadly signed up to the same plans. “One of the things Keir Starmer said in the conference speech was that they were going to spend £1bn of that money on getting more appointments in the NHS.
There’s no shortage of advice for Reeves, from Peter Mandelson warning that any further tax rises would deter business to John McDonnell signalling that a failure to deliver a big increase in public spending risks voter apathy.
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