Chancellor Rachel Reeves has ruled out any increases to UK wealth taxes in the upcoming Autumn Budget, putting an end to speculation over potential hikes to capital gains and other personal taxes aimed at shoring up the country’s fiscal position.
“We’re not interested in a wealth tax,” Reeves said in an interview published by 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.”
The chancellor confirmed that the commitment includes the UK’s capital gains tax, which was last raised in the previous Autumn Statement.
“I think we’ve got the balance right there,” she added.
Fiscal Rules and Public Spending Commitments
Reeves also indicated she would not invoke the government’s emergency borrowing powers, which could have temporarily suspended fiscal rules on day-to-day spending.
While this may provide assurance to investors, it raises questions over the flexibility available for future public investment, particularly if economic conditions worsen.
Since restoring the UK’s fiscal headroom to £9.9 billion in March, Reeves has faced growing pressure from slowing growth forecasts and currency volatility, much of it tied to trade uncertainty following recent actions by the Trump administration in the United States.
As it stands, the Chancellor remains committed to her fiscal principle that taxation must be used to fund routine expenditure, with borrowing reserved for capital investment.
This has become a central tenet of the government’s broader economic strategy, despite limited fiscal space.
International Engagements and Trade Policy
Reeves is scheduled to attend the IMF spring meetings in Washington this week, where she is expected to meet with US Treasury Secretary Scott Bessent and press the case for a UK-US trade agreement.
Prime Minister Keir Starmer spoke with President Trump on Friday, reiterating the UK’s support for “free and open trade” and the importance of national interest, according to a statement from Downing Street.
Addressing speculation about pressure from the US to curtail trade with China, Reeves said: “It would be very foolish” to cut ties with the Asian country, signalling a more pragmatic stance than Washington’s current posture.
Capital Markets and UK Listings
In a separate remark that may interest City stakeholders, Reeves voiced support for the proposed London listing of Chinese fast fashion giant Shein.
While the company has faced scrutiny over supply chain practices, Reeves said the UK “wants to welcome new listings,” as part of wider efforts to revive the attractiveness of London’s capital markets.
Her comments suggest the Treasury is keen to bolster the UK’s IPO pipeline, despite geopolitical sensitivities around Chinese investment and trade.