Labour pledges not to raise corporation tax above 25% during first term

'Pro-business' party

Shadow chancellor of the Labour Party Rachel Reeves has pledged not to hike the rate of corporation tax above the current 25% level during its first term in government.

"We reject the calls from those on the right wing of the Conservative Party to cut corporation tax. Our current rate is the lowest in the G7," she said during a speech at the Labour Business Conference today (1 February). The current rate "strikes the correct balance" between the needs of the public finances and the demands of a "competitive global economy", she argued. Labour vows to 'reinvigorate' UK capital markets as part of financial services agenda  She did not rule out reducing it, however, should Labour win a second term in government, noting that "should our competitivenes...