The Labour government has signed Britain up to a new United Nations agreement that advocates higher taxes on the wealthy, fossil fuels, alcohol, and other unhealthy products. Known as the Sevilla Commitment, the non-binding pact was agreed by 192 countries at a five-day summit in Seville, Spain, and aims to help developing nations raise revenue for sustainable development.
The agreement, while focused on funding support for poorer nations, contains 42 references to taxation. These include calls for increased levies on high net-worth individuals, natural resources, pollution, alcohol, and tobacco. It also encourages gender-responsive taxation and broader tax bases, such as clamping down on informal cash-in-hand sectors.
Britain also signed side declarations, including the World Health Organisation’s 3 by 35 Initiative, which seeks to raise taxes on alcohol, tobacco, and sugary drinks to both generate revenue and improve public health. Another declaration targets tax relief reform, encouraging the removal of what it calls ineffective or harmful tax breaks.
A government spokesperson stressed that the commitments are not legally binding and do not affect UK sovereignty over tax policy:
“UK tax-setting powers remain solely with the Chancellor. This agreement is intended to support developing countries in becoming self-sufficient.”
However, the move has drawn criticism from the Conservative Party. Shadow Treasury Minister Gareth Davies accused Labour of aligning with international organisations that do not reflect British priorities:
“People want simpler, lower taxes not complex, ideological schemes driven by global elites. This will make reversing Labour’s tax hikes even harder.”
The signing comes shortly after Chancellor Rachel Reeves warned that further tax increases may be necessary in the autumn to cover a funding gap exacerbated by Labour’s internal rebellion over welfare reforms. Labour MPs are also reported to be pushing for new wealth taxes and expanded sin taxes on items like gambling, sugary foods, and alcohol.
Critics warn that, despite the agreement’s non-binding status, signing up signals a long-term shift toward higher taxation. Donald Trump pulled the U.S. out of the pact last month, citing concerns over tax, climate, and gender equality clauses that he said violated U.S. red lines.
The UN says the Sevilla Commitment aims to shape global financial systems by promoting progressive taxation, addressing tax avoidance, and linking fiscal policy to environmental and social goals. A senior UN official described it as a roadmap for how countries should manage every kind of money national, international, public, and private.
