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Labour rules out increasing VAT rate

Labour rules out increasing VAT rate
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Labour Party will not increase value-added tax if it wins an election on July 4, its finance spokesperson Rachel Reeves said, after Conservative chancellor Jeremy Hunt said Labour had not clearly ruled it out.

Hunt, in an article for Thursday's Daily Telegraph, said the Conservatives would not raise VAT over the course of the next five-year parliamentary term if they remained in power, and said Labour had not given the same commitment.


"This is absolute nonsense. Labour will not be increasing income tax, national insurance, or VAT," Reeves - who hopes to replace Hunt as chancellor - said in response.

VAT is charged at a rate of 20 per cent on most goods and services in Britain and is the government's second largest source of tax revenue, behind income tax, raising £198 billion in the year to the end of April.

In an interview with Sky News on Tuesday, Reeves said a Labour government would not raise either income tax or national insurance "for the duration of the next parliament" but repeatedly declined to make the same commitment for VAT.

Instead, Reeves said Labour had "no plans for increased taxes" beyond the fairly minor increases it had already announced, such as charging VAT on fees for private schools.

Britain's Institute for Fiscal Studies warned last week that whichever party was in power after the election would struggle to meet existing budget rules without either raising taxes or cutting either the range or quality of public services.

Tax as a share of national income is on track to rise to its highest since 1948 this financial year, according to government budget forecasts in March, as thresholds for paying income tax have not kept up with inflation.

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Phil Whitehead is new Molson Coors EMEA & APAC president

Phil Whitehead is new Molson Coors EMEA & APAC president

Phil Whitehead has been appointed President and Chief Executive Officer of the EMEA & APAC division of Molson Coors Beverage Company.

Whitehead has been Managing Director of the company’s Western Europe region for the past eight years and prior to this was European Supply Chain Director. He will continue to lead the Western Europe business until a successor is appointed.

Starting in the UK and Ireland business back in 2006, Whitehead has worked his way up the ranks over his tenure with the international brewer. During his time as Western Europe Managing Director, he has led for the continued growth of powerhouse brands like Carling and Coors, as well as the premiumisation and diversification of the company’s portfolio with world beer brands including Staropramen, Cobra and Madri Excepcional. As the brewer expanded beyond the beer aisle, Whitehead oversaw the acquisition of Aspall Cyder in 2019 and a distribution partnership with Rekorderlig Cider in the UK.

Commenting on his appointment, Molson Coors Global President & Chief Executive Officer Gavin Hattersley said: “Throughout his time with our business, Phil has proven himself to be the kind of smart and strategic business leader who is capable of driving successful results for our business. I am confident Phil will put his strong combination of leadership traits to work to the benefit of our EMEA & APAC business, and all of Molson Coors.”

A former Chair of the British Beer and Pub Association and strong advocate for the beer and hospitality industry in the UK, Whitehead said of his new appointment: “It has been an absolute honour to have led our Western Europe business over the past eight years. I have been incredibly fortunate to have worked with a fantastic local team and alongside great customers and peers as part of our wider brewing industry.

“I look forward to taking this next step with a company I am incredibly proud has been my home over the past 18 years, and continuing to work alongside my EMEA & APAC and global colleagues to drive the successful growth of our business.”

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