UK Chancellor of the Exchequer Reeves promises most “pro-business” government | Wilnesh News

LONDON — British Finance Minister Rachel Reeves said on Friday that the new Labor government will be the most growth-friendly and business-friendly the country has ever seen.

Reeves told CNBC that only through wealth creation can the living standards of ordinary British people improve and more money be invested in public services.

“This will be the most pro-growth, pro-business Treasury Department this country has ever had,” Reeves said in a remote interview with CNBC’s Steve Sedgwick.

She added: “I will work with businesses to ensure we do everything we can to create wealth and bring business investment into the UK economy.”

Reeves made the remarks in Rio de Janeiro, where she was attending a meeting of G20 finance ministers, three weeks after Labor won a landslide victory in the UK general election on July 4.

The chancellor said she had met with business leaders interested in doing business in the UK, but admitted businesses needed more clarity on tax.

On Monday, Reeves will outline the findings of a Treasury audit in which she is expected to reveal a £20 billion ($25.7 billion) black hole in the public finances.

The announcement could pave the way for a tax-increased autumn budget, the new government’s first major fiscal event. The date for the financial plan will also be announced on Monday.

Reeves declined to comment on specific details, saying “the tax issue should be part of the budget.” But she added that she wanted to ensure the UK had a “competitive tax system”.

“I want taxes to be as low as possible, but unlike the previous government, I will not make promises that cannot be kept or say where the money will come from. The new government’s first priority is to develop the economy, and to develop the economy, we Wealth creators need to be attracted to the UK,” she said.

“We can’t achieve higher growth and greater prosperity by taxing and spending. We need to attract business investment to do that.”

Reeves has previously ruled out increasing income tax, national insurance, VAT or corporation tax – the government’s main sources of revenue. However, given her party’s pledge to increase state investment and public sector pay, the Prime Minister has a delicate balance to deliver on.

Prime Minister Keir Starmer said Wednesday Tough fiscal decisions will be made ahead, he told parliament, with his government facing a “crisis greater than we imagined” during the past 14 years of Conservative rule.

The centre-left leader has vowed to take a tough stance on public spending until the country’s finances return to normal. Tuesday he pause Seven party members voted against the proposal to scrap the cap on spending on two-child benefits.

As Britain seeks to emerge from a cost-of-living crisis, Labor reiterated its “fundamental mission” to return the country to economic growth in last week’s King’s Speech.

Previously announced economic measures by the government include the nationalization of rail operators and the creation of a publicly owned clean power company, as well as further investment in public services and the construction of new homes.

The G20 meeting marks the early debut of the new finance minister, who heralds an opportunity to “reset” some of the UK’s relationships with its international counterparts.

The comments echoed similar comments made by Starmer at the European Political Community summit last week as he sought to distance his government from Britain’s former leader.

Watch the full interview with Rachel Reeves on CNBC on Monday, July 29.