Reeves pledges no increases to UK wealth taxes in next budget

Shiyin Chen, Bloomberg News on Apr 19, 2025

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Rachel Reeves vowed not to raise wealth taxes in her Autumn Budget, casting off speculation that the Chancellor of the Exchequer will increase levies to defend the U.K.’s fiscal buffer.

“We’re not interested in a wealth tax,” Reeves said in an interview with the Telegraph on Saturday. “Our priority is to grow the economy and that’s the way that you make working people better off and secure better public finances.”

That pledge includes the U.K.’s capital gains tax, which was last raised in the fall, Reeves said. “I think we’ve got the balance right there,” she told the newspaper.

Reeves also pledged not to deploy an emergency break in fiscal rules on borrowing that would permit a temporary pause, comments that may spark questions on whether public spending could take another hit.

The chancellor has repeatedly sought to dampen speculation over another tax hike as she holds firm on her rule that taxation must fund day-to-day spending. Since she moved to restore her fiscal buffer to £9.9 billion ($13.1 billion) in March, market moves have eaten away at her headroom and slower economic growth amid U.S. President Donald Trump’s trade war could erode that buffer further.

Reeves is set to travel to Washington next week for the International Monetary Fund’s spring meeting, where she’ll meet with Treasury Secretary Scott Bessent and push for a trade deal, according to the Telegraph. Prime Minister Keir Starmer spoke with Trump on Friday on issues including trade, reiterating his commitment to free and open trade and the importance of protecting the national interest, according to a statement from Downing Street.

She’s likely to reject any attempts by the Trump administration to limit dealings with China, telling the Telegraph that it would be “very foolish” to cut ties with the Asian country. The chancellor also offered support of the proposed initial public offering of Shein in London, despite concerns over the Chinese fast fashion company’s supply chain, saying the U.K. wants to welcome new listings.