Labour rules out raising corporation tax above 25% in next parliament

Shadow chancellor Rachel Reeves unveils raft of measures at business summit aimed at boosting investment, productivity and certainty

Labour will not raise corporation tax above its current rate of 2025 during the next parliament, the party has pledged, in an attempt to offer businesses greater certainty.

Shadow chancellor Rachel Reeves said the tax pledge included maintaining full expensing, which allows businesses that invest in IT equipment and machinery to claim back up to 100% of the cost of the investment by writing it off against tax on their profits. She said Labour would also maintain the annual investment allowance introduced by Jeremy Hunt.