Tin-eared chancellor needs to stop damaging economy

Rachel Reeves seems unable or unwilling to decide whether the rich are her friends or enemies

- Chris Blackhurst

So we’re beginning to get the idea about what’s coming our way in the Budget.

Rachel Reeves told the International Monetary Fund in Washington this week that those with the “broadest shoulders” should pay more tax. The chancellor has ruled out an annual levy on assets like property, land and pensions, but is looking at other ways to target wealthy people. “I do think those with the broadest shoulders should pay their fair share of tax,” she said. Taxes on the wealthy would be “part of the story”, she added.

For good measure, Reeves said: “We are not going to be introducing a wealth tax. We already have a number of taxes that do target wealthy people, and some of those were increased in the Budget last year.”

Meanwhile, officials briefed that Reeves will avoid areas that could hit economic growth. “It’s not all about tax, but I do want to have a competitive environment for all businesses in Britain,” said Reeves. She intends to double the number of visas to highly talented, high-paid individuals, for example.