Rachel Reeves Claims to Support Growth – But This Costly Mistake Could Ruin Everything!

Rachel Reeves wants to be seen as the best supporter of economic growth in Britain. However, many businesses are worried because new tax increases could cost up to 130,000 jobs. This could hurt families and harm communities. 

She promised to support growth, but if she really wanted to help businesses, she could have promised not to raise more taxes. People hoping for that were disappointed. 

If she had announced a cut in corporation tax, investors worldwide would have paid attention. But there was no mention of that. 

Right now, the UK’s corporation tax is 25%, while in Ireland, it is only 12.5%. From 2017 to 2022, the UK had a lower rate of 19%. Some believe the higher tax rate is part of the reason the UK’s economy isn’t growing as expected. 

Reeves criticized the Conservative government’s Brexit deal, calling it a failure. But she did not clearly explain how she would use the UK’s new trading freedoms to improve business opportunities. 

Much of her speech sounded like something a Conservative Chancellor might say. She said Britain should be the “best place in the world to be an entrepreneur” and criticized the UK’s low productivity and excessive regulations. 

She also seems ready to argue with environmentalists, saying developers should not have to worry about protecting bats and newts. She also supports expanding Heathrow Airport with a new runway. She mentioned plans to make tough decisions on welfare and talked about areas of the UK that need more investment. 

Reeves also wants better connections between Oxford and Cambridge. People in the North of England hope she will improve their poor transport systems. But these changes will take time, and right now, businesses are worried about the upcoming National Insurance increase in April. 

The government’s own reports show that new worker protection laws could cost businesses £5 billion. Instead of blaming people who oppose development (NIMBYs), Reeves should focus on how her own government’s policies are slowing down economic growth. 

But the biggest challenge for the UK is competing in the global economy, something the Conservatives also struggled with. 

The United States has many problems, but it continues to produce world-changing technology companies. Britain has many smart people, but where are the UK versions of Facebook, Tesla, Microsoft, Amazon, or SpaceX? People with great ideas need access to funding to grow their businesses. 

In the early days of computers, the UK created the BBC Micro and ZX Spectrum, inspiring many programmers. But unlike the US, Britain never built big companies like Intel or Apple. The country has the knowledge but struggles to turn small ideas into global success. 

The construction industry hopes Reeves can help development projects succeed, just as they hoped previous Conservative governments would. 

If she really wants businesses to thrive, she should focus on lowering taxes. She is right to praise entrepreneurs, but high taxes could stop them from being creative and growing their businesses.