Shadow chancellor Rachel Reeves would not be drawn on whether she would introduce tax breaks for private medical insurance (PMI) at next month’s Budget.
Responding to a question at the Association of British Insurers’ annual conference on what she would do for the insurance industry, including a possible tax break for PMI, if she was chancellor preparing the Budget, Reeves (pictured) sidestepped the question, adding that she would not be making any unfunded spending commitments.
“I have been very clear as shadow chancellor and with my colleagues as well that we won’t make any announcement about spending commitments or tax changes without explaining where the money is going to come from,” Reeves said.
“We saw the perils of that approach with the Mini Budget last year with unfunded tax cuts and we’re not going to fall into that camp.
“In fact it’s an important lesson for all of us that you have to make sure that you are clear about where the money is going to come from.”
Instead, Reeves said she would intend to introduce a stiffer windfall tax on energy companies, using that to tackle the cost of living crisis, and would be implementing the Labout Party’s green agenda.
Earlier, Bupa Insurance chief executive Alex Perry called for tax breaks for PMI, arguing that the industry is “extremely heavily taxed” and that the tax regime is limiting demand among employers.
This echoed a previous call from Axa Health in it’s submission to HM Treasury’s pre-Budget call for evidence.