Labour conference: Party to unveil plan to scrap business rates

A Labour government would cut business rates in England and then phase them out completely, shadow chancellor Rachel Reeves will announce on Monday.

The party wants to boost the High Street by axing what it views as an outdated tax that harms business.

It plans a new property tax it says will shift the burden onto tech giants.

Ms Reeves will tell Labour's conference in Brighton: "Labour will tax fairly, spend wisely, and get our economy firing on all cylinders."

The conference has so far been dominated by a row over Sir Keir Starmer's plans to change the way leaders and MPs are selected.

The Labour leader got a watered-down version of the plans passed by conference, despite fierce opposition from left-wingers.

Labour's deputy leader Angela Rayner also grabbed headlines on Sunday, when she said she would not apologise for branding Boris Johnson "scum" until the prime minister retracted past comments she described as homophobic, racist and misogynistic.

On Monday, Ms Reeves will attempt to shift the focus on to policy.

She will say: "Our High Street businesses do so much to enrich our lives and our communities, facing huge adversity in the past year. They are struggling right now, with a cliff edge in rates relief coming up in March.

"The next Labour government will scrap business rates.

"We will carry out the biggest overhaul of business taxation in a generation, so our businesses can lead the pack, not watch opportunities go elsewhere."

Ms Reeves told the Sunday Times she did not have "any plans to increase the rates of income tax" if Labour wins the next election.

But she is not expected to mention personal taxes in her conference address, focusing instead on business rates.

She will announce plans to scrap "hundreds" of tax breaks - and set up an "Office of Value for Money", which aides describe as a "hit squad" to scrutinise government spending and ensure tax is used wisely.

Tax reliefs "create extra layers of complexity to navigate, and added together they cost more than our entire NHS budget," she will tell delegates.

"We will look at every single tax break. If it doesn't deliver for the taxpayer or for the economy then we will scrap it."

Labour would also end the tax relief afforded to private schools due to their charitable status - and plans to raise almost £440m by closing the carried interest loophole which relates to private equity fund managers and the share of profits made by investment deals.

The policies were welcomed by the Federation for Small Businesses.

National chair Mike Cherry said: "The shadow chancellor is right to propose concrete reform of a business rates tax which disproportionately burdens the small businesses and sole traders at the heart of local communities."

But Conservative Party co-chairman Oliver Dowden said: "Successive Labour leaders have threatened businesses with tax hikes, higher bills, and more red tape.

"Only the Conservatives can be trusted to support our businesses and help our economy thrive as we build back better".