Shadow chancellor Rachel Reeves today vowed to target £174billion of tax reliefs - but tried to quell fears Labour will hike income tax.
Ms Reeves is unveiling a sweeping review of reliefs in her speech to conference in Brighton that could hit pensions, private schools and even the cost of children's shoes.
However, she insisted that Labour has 'no plans' to increase income tax, despite Keir Starmer setting hares running by stating the move is not 'off the table'.
Meanwhile, Ms Reeves said the party will replacing business rates. In a first step, it would hit tech corporations by raising the digital services tax from two per cent to 12 per cent and use the £2.1 billion raised to subsidise the rates bills of high-street traders.
Over time the rates would be phased out and replaced with a property levy.
Shadow chancellor Rachel Reeves (pictured on a visit in Brighton with Keir Starmer) today vowed to target £174billion of tax reliefs - but tried to quell fears Labour will hike income tax
'If we were in government today, next year we would freeze business rates and increase the threshold for small business rates relief.
'That would give a temporary fix to this problem and we would fund that by increasing the digital services tax to raise that money, to cut rates for high street and smaller businesses.'
In future, the funding for business rates cuts would come from the global minimum corporation tax being championed by US president Joe Biden.
Ms Reeves told BBC Radio 4's Today: 'I have set out clear fiscal rules, that we will