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

Shadow chancellor Rachel Reeves tells business summit of measures to boost investment, productivity and certainty

Labour will not raise corporation tax above its current rate of 25% during the next parliament, the party has pledged, in an attempt to offer businesses greater certainty - but the promise has prompted warnings about a lack of fiscal flexibility.

The 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.