Rachel Reeves has said those with the \u201cbroadest shoulders\u201d should pay their \u201cfair share,\u201d of taxes and promised new measures to tackle inflation, as she draws up next month\u2019s crunch budget.<\/p>\n
Speaking in Washington DC, where she was attending the annual meetings of the International Monetary Fund (IMF), Reeves confirmed she was looking at wealthy taxpayers as she draws up her budget plans.<\/p>\n
She also promised a new package of anti-inflation measures, after the IMF\u2019s warning<\/a> that UK consumers are expected to suffer the highest price rises in the G7 this year and next.<\/p>\n \u201cInflation is still too high,\u201d she said. \u201cWe do want to bear down on some of the costs that people face.\u201d She added she would deliver \u201ca range of policies to do that\u201d in the budget.<\/p>\n The Bank of England has repeatedly pointed to \u201cadministered prices\u201d \u2013 those set by regulators or government \u2013 as a key cause of above-target inflation. In the Bank\u2019s August monetary policy report, it cited changes in sewerage charges, bus fares, vehicle excise duty and VAT on private school fees as \u201cadministered prices\u201d contributing to inflation.<\/p>\n Reeves pointed to the recent competition review of vets practices, and the government\u2019s decision to freeze prescription prices, as examples of what can be done.<\/p>\n The chancellor is expected to deliver a package of tax increases and spending cuts on 26 November to meet her fiscal rules<\/a> in the face of deteriorating forecasts from the independent Office for Budget Responsibility (OBR).<\/p>\n She acknowledged that wealthy taxpayers could expect to pay more \u2013 but stressed that she was determined not to deter this group from staying in the UK.<\/p>\n \u201cI want Britain to be a great place for talent, for entrepreneurs, for successful individuals to come, and that requires getting the balance right,\u201d Reeves said. \u201cBut I do think those with the broadest shoulders should pay their fair share of tax and I think you can see that from my actions last year at the budget.\u201d<\/p>\n She added: \u201cI want the UK to remain an attractive place, but we\u2019ve got to get the balance right and I do think that if Britain is your home you should pay your taxes here.\u201d<\/p>\n Reeves also said she hoped to secure promises of more investment in the UK from major pharmaceutical companies, in exchange for a more favourable deal on drug prices.<\/p>\n \u201cWe do need to make sure that we are an attractive place for pharmaceuticals, and that includes on pricing, but in return for that, we want to see more investment flow to Britain,\u201d she said.<\/p>\n The government is in talks with pharmaceuticals firms<\/a>, which are demanding more generous treatment by the NHS, under pressure from Donald Trump to lower prices in the US. At the same time, ministers are pressing the US not to impose tariffs on drug imports.<\/p>\n \u201cWe\u2019ve been very successful with the US in terms of negotiating lower tariffs … and of course, we want that to be the case with pharmaceuticals as well. But we are in the middle of those negotiations at the moment,\u201d the chancellor said.<\/p>\n Pressed for details about how she could raise additional revenue from richer taxpayers, the chancellor said: \u201cWe\u2019re not going to be introducing a wealth tax. We already have a number of taxes in the UK that do tax wealth and do tax wealthy people, and some of those we increased in the budget last year.\u201d<\/p>\n She highlighted changes at last year\u2019s budget, including the crackdown on non-doms, VAT on private school fees and higher taxes on private jets.<\/p>\n skip past newsletter promotion<\/a><\/p>\n Sign up to Business Today<\/p>\n Get set for the working day \u2013 we’ll point you to all the business news and analysis you need every morning<\/p>\n Privacy Notice: Newsletters may contain information about charities, online ads, and content funded by outside parties. If you do not have an account, we will create a guest account for you on theguardian.com<\/a> to send you this newsletter. You can complete full registration at any time. For more information about how we use your data see our Privacy Policy<\/a>. We use Google reCaptcha to protect our website and the Google Privacy Policy<\/a> and Terms of Service<\/a> apply.<\/p>\n after newsletter promotion<\/p>\n Asked to clarify who may be affected, Reeves added: \u201cWealth\u2019s not about your annual salary.\u201d<\/p>\n