WEBVTT - UK Chancellor Rachel Reeves Talks Rejecting Wealth Tax

0:00:00.000 --> 0:00:02.640
<v Speaker 1>I tend to make a time for Pebog TV and radio. Chancellor,

0:00:03.120 --> 0:00:05.840
<v Speaker 1>we've heard you say already that the public finances in

0:00:05.880 --> 0:00:08.800
<v Speaker 1>a pretty precarious presition. So I want to ask you.

0:00:09.320 --> 0:00:12.039
<v Speaker 1>Many Labor MPs really want you to lift the two

0:00:12.119 --> 0:00:14.400
<v Speaker 1>child benefit caps. And we hear that in que the

0:00:14.440 --> 0:00:17.040
<v Speaker 1>Prime Minister, and we afford to do that.

0:00:18.120 --> 0:00:20.400
<v Speaker 2>Well, no one needs to tell me how important child

0:00:20.400 --> 0:00:23.680
<v Speaker 2>poverty is. I came into the Labor Party because I've

0:00:23.680 --> 0:00:26.560
<v Speaker 2>wanted children from all backgrounds to have a good start

0:00:26.600 --> 0:00:30.120
<v Speaker 2>in life, and we've already made strides in reducing child

0:00:30.160 --> 0:00:33.640
<v Speaker 2>poverty in this parliament. We're rolling out free breakfast clubs

0:00:33.600 --> 0:00:36.680
<v Speaker 2>are all primary schools, extending free school meals to an

0:00:36.720 --> 0:00:39.440
<v Speaker 2>additional five hundred thousand children with kept the cost of

0:00:39.479 --> 0:00:42.080
<v Speaker 2>school uniform. We've increase the national living wage and the

0:00:42.159 --> 0:00:45.080
<v Speaker 2>national minimum wage. I would I like to do more, yes,

0:00:45.200 --> 0:00:47.519
<v Speaker 2>but of course we haven't always got to explain how

0:00:47.560 --> 0:00:51.120
<v Speaker 2>policies will be paid for. We've got the report from

0:00:51.120 --> 0:00:54.480
<v Speaker 2>the Child Poverty Task Force later this year and we'll

0:00:54.520 --> 0:00:58.640
<v Speaker 2>respond to that. But it is important for all families

0:00:59.280 --> 0:01:02.680
<v Speaker 2>that the the numbers add up, and that's always what

0:01:02.680 --> 0:01:05.080
<v Speaker 2>I've done as Chancellor of the Exchequer.

0:01:04.800 --> 0:01:07.120
<v Speaker 1>And that's been a really strong message from you throughout.

0:01:07.240 --> 0:01:10.640
<v Speaker 1>Does your party, though, understand how important it is to

0:01:10.840 --> 0:01:12.960
<v Speaker 1>make the numbers out of stand on the right side

0:01:12.959 --> 0:01:13.600
<v Speaker 1>of the bond market.

0:01:14.280 --> 0:01:18.840
<v Speaker 2>We campaigned the election on economic stability fiscal responsibility, and

0:01:18.959 --> 0:01:21.560
<v Speaker 2>we did that for a reason because it was ordinary

0:01:21.560 --> 0:01:24.399
<v Speaker 2>working people and businesses who paid the price for the

0:01:24.440 --> 0:01:28.040
<v Speaker 2>economic mismanagement in the last parliament, when interest rates went

0:01:28.040 --> 0:01:31.000
<v Speaker 2>through the roof, when inflation got out of control, when

0:01:31.080 --> 0:01:34.760
<v Speaker 2>pensions are put in peril. And because of that and

0:01:34.800 --> 0:01:39.520
<v Speaker 2>my party, the Labor Party, accepted the crucial importance of

0:01:39.600 --> 0:01:45.400
<v Speaker 2>economic discipline to support working families. It's not intention economic responsibility,

0:01:45.560 --> 0:01:47.800
<v Speaker 2>so our commitments to make people better off it is

0:01:47.960 --> 0:01:50.200
<v Speaker 2>part of that commitment. Because there's five cuts and interest

0:01:50.240 --> 0:01:52.120
<v Speaker 2>rates as you know by the Bank of England, but

0:01:52.120 --> 0:01:54.760
<v Speaker 2>they've only been possible because of that stability We returned

0:01:54.800 --> 0:01:55.520
<v Speaker 2>to the economy.

0:01:55.760 --> 0:01:58.880
<v Speaker 1>Look on winter fuel payments, on pay rises for doctors,

0:01:58.920 --> 0:02:01.920
<v Speaker 1>on welfare reform. You've seemed to give, but when are

0:02:01.960 --> 0:02:03.400
<v Speaker 1>you going to take away? When are you going to

0:02:03.440 --> 0:02:06.320
<v Speaker 1>choose the bond market over the left of your party?

0:02:07.080 --> 0:02:10.040
<v Speaker 2>Well, if you look today at my conference speech. I'll

0:02:10.080 --> 0:02:12.800
<v Speaker 2>be setting out a youth guarantee because at the moment

0:02:12.800 --> 0:02:16.079
<v Speaker 2>we've got a million young people who are not in education,

0:02:16.160 --> 0:02:18.919
<v Speaker 2>employment or training. That's one in eight young people. I'm

0:02:18.919 --> 0:02:21.200
<v Speaker 2>not going to let that stand. It is a waste

0:02:21.200 --> 0:02:23.480
<v Speaker 2>of their talent and potential. But it's also a huge

0:02:23.520 --> 0:02:26.000
<v Speaker 2>waste for business and a huge way for taxpayers that

0:02:26.040 --> 0:02:29.520
<v Speaker 2>we are subsidizing young people to be out of work

0:02:30.120 --> 0:02:33.120
<v Speaker 2>when we want them to be in training or in

0:02:33.240 --> 0:02:35.840
<v Speaker 2>paid employment. And that's one example of how we're reforming

0:02:35.840 --> 0:02:39.720
<v Speaker 2>the welfare state to get the costs down and at

0:02:39.760 --> 0:02:42.160
<v Speaker 2>the same time are bringing more people into work.

0:02:42.280 --> 0:02:43.720
<v Speaker 1>What would you do about it if someone said they

0:02:43.720 --> 0:02:45.440
<v Speaker 1>don't want to work in the hair hope, well, that's

0:02:45.480 --> 0:02:46.160
<v Speaker 1>not acceptable.

0:02:46.320 --> 0:02:50.239
<v Speaker 2>You know, like welfare is not an alternative to work.

0:02:50.520 --> 0:02:53.400
<v Speaker 2>The welfare state is there if you need it. You

0:02:53.440 --> 0:02:55.800
<v Speaker 2>can't say to actually, I'd rather remain on benefits than

0:02:55.880 --> 0:02:58.560
<v Speaker 2>take that job opportunity. And that's a really important part

0:02:58.560 --> 0:03:00.520
<v Speaker 2>of what I'm setting out today, built on what the

0:03:00.520 --> 0:03:03.160
<v Speaker 2>previous labor government did under Tony Blair with the New

0:03:03.200 --> 0:03:05.840
<v Speaker 2>Deal for Young People that said there was not an

0:03:05.880 --> 0:03:08.520
<v Speaker 2>option just to stay on benefits, and that's the same

0:03:08.680 --> 0:03:09.639
<v Speaker 2>with me as Chancellor.

0:03:09.720 --> 0:03:12.000
<v Speaker 1>Okay, look, I don't expect you to pre empty budget

0:03:12.000 --> 0:03:14.280
<v Speaker 1>with me, Chancellor, but you did promise business that there'd

0:03:14.280 --> 0:03:16.560
<v Speaker 1>be no more borrowing and no more tax rises. Is

0:03:16.560 --> 0:03:17.519
<v Speaker 1>that still true?

0:03:17.800 --> 0:03:19.959
<v Speaker 2>Well, what I did last year at the budget was

0:03:20.080 --> 0:03:23.120
<v Speaker 2>draw a line under the economic and fiscal mismanagement of

0:03:23.160 --> 0:03:27.639
<v Speaker 2>the previous government, and that did require difficult decisions on taxes, so.

0:03:27.560 --> 0:03:28.399
<v Speaker 1>There won't be more of them.

0:03:28.560 --> 0:03:32.320
<v Speaker 2>Well, I think all of your viewers can see that

0:03:32.919 --> 0:03:35.720
<v Speaker 2>the last year has bought his fair share of global challenges,

0:03:36.160 --> 0:03:40.720
<v Speaker 2>the global cost of borrowing, the tariffs from the United States,

0:03:40.760 --> 0:03:43.960
<v Speaker 2>the ongoing conflicts in the Middle East, the disruptions to

0:03:44.120 --> 0:03:48.440
<v Speaker 2>supply chains, and Russia's intensified aggression. I'm Chanceller in the

0:03:48.440 --> 0:03:50.120
<v Speaker 2>world as it is, not as the world as I

0:03:50.200 --> 0:03:51.880
<v Speaker 2>might worship to be, and I had to respond to

0:03:51.920 --> 0:03:55.240
<v Speaker 2>those But those fiscal rules that we set out in

0:03:55.280 --> 0:03:58.200
<v Speaker 2>the election, to pay for day to day spending through

0:03:58.240 --> 0:04:01.000
<v Speaker 2>tax receipts, to get deck down as a share of GDP,

0:04:01.480 --> 0:04:04.840
<v Speaker 2>to get the deficit down this year, those commitments stand.

0:04:05.400 --> 0:04:09.160
<v Speaker 2>And I'm also determined to bring down inflation further because

0:04:09.160 --> 0:04:12.160
<v Speaker 2>I recognize that inflation at three point eight percent is

0:04:12.160 --> 0:04:14.560
<v Speaker 2>still too high, so that is a global challenge as well.

0:04:14.640 --> 0:04:15.600
<v Speaker 2>But as we get that.

0:04:15.600 --> 0:04:18.320
<v Speaker 1>Down, those commitments stand. You see, the manifesto stands. In

0:04:18.360 --> 0:04:21.640
<v Speaker 1>the manifesto, you said will not increase national insurance, the

0:04:21.680 --> 0:04:24.240
<v Speaker 1>basic higher or additional rates of income tax or V

0:04:24.360 --> 0:04:26.839
<v Speaker 1>eight Yes or no? Does that still hold?

0:04:27.120 --> 0:04:28.920
<v Speaker 2>Yes? It does. And we also made that commitment around

0:04:28.920 --> 0:04:32.560
<v Speaker 2>corporation tax as well. And those commitments are spanned and

0:04:32.600 --> 0:04:35.359
<v Speaker 2>they stand for a reason because working people paid a

0:04:35.400 --> 0:04:37.360
<v Speaker 2>heavy price in the last parliament. It was the worst

0:04:37.360 --> 0:04:41.360
<v Speaker 2>parliament on record for living standards. It's still the biggest

0:04:41.400 --> 0:04:45.719
<v Speaker 2>challenge for working people. So those commitments stand. But what

0:04:45.800 --> 0:04:48.240
<v Speaker 2>I want your viewers to know that my commitments to

0:04:48.360 --> 0:04:52.680
<v Speaker 2>economic stability, to fiscal responsibility and to those fiscal rules

0:04:52.839 --> 0:04:56.200
<v Speaker 2>they absolutely stand because they are the bedrof of stability

0:04:56.240 --> 0:04:58.760
<v Speaker 2>and only with stability can we grow the economy.

0:04:58.839 --> 0:05:00.240
<v Speaker 1>So we need to know where you're going to The

0:05:00.279 --> 0:05:02.719
<v Speaker 1>money from the French are in a similar fiscal fine,

0:05:02.760 --> 0:05:05.680
<v Speaker 1>they're similar seemingly on the brink of a wealth tax.

0:05:06.160 --> 0:05:08.479
<v Speaker 1>Is it time for a mansion tax? You're in the UK.

0:05:08.600 --> 0:05:11.520
<v Speaker 2>But I would like to differentiate ourselves from what's happening

0:05:11.520 --> 0:05:15.279
<v Speaker 2>in other countries around the world are here, yes, but

0:05:15.320 --> 0:05:18.560
<v Speaker 2>they have struggle to get a budget through, and we

0:05:18.680 --> 0:05:22.839
<v Speaker 2>successfully got the budget through last year and the spending reviewer.

0:05:22.920 --> 0:05:25.520
<v Speaker 2>Many people said that wouldn't be possible because we had

0:05:25.560 --> 0:05:28.359
<v Speaker 2>to make difficult decisions. But I'm up for difficult decisions

0:05:28.400 --> 0:05:30.400
<v Speaker 2>when they are in the national interest and I will

0:05:30.400 --> 0:05:35.320
<v Speaker 2>continue to take them. We already taxed wealth in Britain

0:05:35.560 --> 0:05:41.800
<v Speaker 2>with capital gains tax, with inheritance tax. The budget last year.

0:05:42.160 --> 0:05:45.000
<v Speaker 2>As you know, we got rid of the non domicile

0:05:45.040 --> 0:05:49.039
<v Speaker 2>status in the tax system. We put VAT on the

0:05:49.080 --> 0:05:52.440
<v Speaker 2>school fees, we increase taxes on private jets. We already

0:05:52.480 --> 0:05:55.080
<v Speaker 2>have taxes on wealthy people in Britain. I don't think

0:05:55.080 --> 0:05:57.200
<v Speaker 2>we need to stand alone with wealth tax, and in fact,

0:05:57.320 --> 0:06:00.000
<v Speaker 2>countries that do have that don't have those other taxes.

0:06:00.040 --> 0:06:01.440
<v Speaker 2>I'm not even sure it would work.

0:06:01.320 --> 0:06:03.440
<v Speaker 1>Okay, And there's been growing concerned in the city as

0:06:03.440 --> 0:06:06.479
<v Speaker 1>well that you could target the banking sector for high attack.

0:06:06.880 --> 0:06:09.960
<v Speaker 2>I think we probably shouldn't go through every single it's possible,

0:06:10.480 --> 0:06:12.719
<v Speaker 2>what's your message to the site. I think that from

0:06:12.760 --> 0:06:16.160
<v Speaker 2>both of my Mansion House speeches, the city know how

0:06:16.240 --> 0:06:18.839
<v Speaker 2>much I value the contribution that they make both through

0:06:18.880 --> 0:06:22.520
<v Speaker 2>direct employment and investment, but also supporting the wider economy

0:06:22.560 --> 0:06:26.640
<v Speaker 2>with an efficient allocation of capital. And the regulatory reforms

0:06:26.680 --> 0:06:30.080
<v Speaker 2>that I bought in at Chancellor are all about promoting

0:06:30.200 --> 0:06:34.080
<v Speaker 2>growth and job creation and businesses coming to Britain in

0:06:34.160 --> 0:06:35.160
<v Speaker 2>financial services.

0:06:35.279 --> 0:06:37.719
<v Speaker 1>Chancellor, you've also already said that you would be open

0:06:37.800 --> 0:06:41.680
<v Speaker 1>to just having one OBR forecast per year. You accused

0:06:41.760 --> 0:06:44.960
<v Speaker 1>Liz Trust right here on Boomberg TV of sidelining the OBR.

0:06:45.240 --> 0:06:46.159
<v Speaker 1>How is this different?

0:06:46.320 --> 0:06:49.680
<v Speaker 2>Well, the International Monetary Fund have said that there should

0:06:49.720 --> 0:06:51.800
<v Speaker 2>be one physical event a year, and I committed to

0:06:51.800 --> 0:06:55.560
<v Speaker 2>that in the manifesto and have done since. I think

0:06:55.600 --> 0:06:58.599
<v Speaker 2>that their recommendation is a sensible one. That will have

0:06:58.720 --> 0:07:03.240
<v Speaker 2>to mean changes in the second forecast, but that's not

0:07:03.320 --> 0:07:07.599
<v Speaker 2>about reducing transparency. That is about better economics policymaking, so

0:07:07.680 --> 0:07:10.880
<v Speaker 2>we're not having to change policy and giving that uncertainty

0:07:10.960 --> 0:07:13.400
<v Speaker 2>every six months for businesses.

0:07:13.720 --> 0:07:16.600
<v Speaker 1>Just finally, how much worse the polls need to get

0:07:16.800 --> 0:07:19.680
<v Speaker 1>for you to accept that we need to replace Kissed Armer.

0:07:20.200 --> 0:07:23.679
<v Speaker 2>But Kirs Starmer got elected with a massive mandate last year.

0:07:24.160 --> 0:07:27.080
<v Speaker 2>If someone has said fifteen months ago that we would

0:07:27.120 --> 0:07:29.200
<v Speaker 2>be the fastest growing economy in the G seven. We'd

0:07:29.240 --> 0:07:31.400
<v Speaker 2>have five cuts in interest rates, we had done trade

0:07:31.400 --> 0:07:34.640
<v Speaker 2>deals with the US, India and the EU. The wages

0:07:34.680 --> 0:07:36.760
<v Speaker 2>would have risen faster in the first ten months as

0:07:36.800 --> 0:07:39.000
<v Speaker 2>this labor government than the first year ten years of

0:07:39.080 --> 0:07:41.680
<v Speaker 2>the previous conservative government. I think most people have said,

0:07:42.280 --> 0:07:44.600
<v Speaker 2>I don't think so, Rachel. We've achieved those things with

0:07:44.720 --> 0:07:47.160
<v Speaker 2>Kira as Prime Minister, and we'll get on and continue

0:07:47.160 --> 0:07:47.480
<v Speaker 2>the job.