Advisers have said that Labour ruling out a wealth tax is “good news for hardworking Brits” and praised the party for avoiding “a tax on success”.

On Saturday (August 26), Labour shadow chancellor, Rachel Reeves, confirmed that Labour have ruled out a wealth tax should they get into government in the next general election.

Reeves said a Labour government would not introduce a mansion tax on expensive properties or raise capital gains tax.

A warm reception

The news was greeted with positivity from some in the industry, such as Russell & Co IFA, Tim Morris, who said: “This is great news.

“Despite the reference to this supposedly targeting the ‘richest individuals’, this is seldom the result of such policies.

“Those individuals have more than enough money and resources to restructure their financial affairs to mitigate the impact of such taxes.

“And other than that, it is simply a tax on success. And those from the ‘squeezed middle’ will likely end up even more squeezed.”

The Orchard Practice owner and chartered financial planner, Joshua Gerstler, was also optimistic about the news, stating: “It is good news for hardworking Brits.”

Henchurch Lane mortgage and protection adviser, Simon Gore, additionally praised Reeves’ comments, saying that “the country needs stability”.

However, Gerstler cautioned Labour’s plans “need to be taken with a pinch of salt”.

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