(Bloomberg) -- Business Secretary Jonathan Reynolds dismissed warnings of a wealth exodus to escape potential Labour tax hikes, hitting back at criticisms that have been levied at Prime Minister Keir Starmer’s government.
“I think that’s too dramatic,” Reynolds told Bloomberg Television at the Labour Party Conference in Liverpool. The party has a “total commitment to improving the business environment in the UK,” he said.
Labour has faced criticism from the business community that tax increases in the budget on Oct. 30 could deter investment and lead to wealthy Britons to leave. Chancellor of the Exchequer Rachel Reeves all but confirmed over the summer that she’s planning revenue-raisers to close an estimated £22 billion ($29.4 billion) in-year budget gap, and speculation has mounted that she’s looking at hikes on capital gains, inheritance and property.
“The political stability of the UK within the G-7 has been transformed by the election result,” he said. “You have a government committed to active policies to improve the business environment, even where it’s politically difficult, like planning and building homes, and of course fundamentally an open, internationalist outlook.”
Reynolds said that there is always speculation in the run-up to a budget and that it’s a “tricky time” because the government can’t be categorical about its plans in advance. Nevertheless, he said businesses should “look at the big picture.”
“This is an exciting and compelling time for the UK,” he said. “The future is optimistic and bright.”
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