Labour tax plans REVEALED: What will Labour tax to find the money to fund spending splurge
LABOUR has announced plans to increase spending to fund a number of wild initiatives this week.
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Along with radical changes to the NHS and the education system, the party has also proposed radical changes to the welfare system. So what are the policy announcements Labour have made? And how will Labour pay for them if they got into power?
What policy announcements have Labour made?
Many, including members of the Labour frontbench, are sceptical all of these proposals will make it into the party’s official manifesto.
Nevertheless, Labour revealed a number of proposed business policies during the Labour Party Conference in Brighton this week.
In addition to promoting a four-day working week, the party has announced they will scrap universal credit and give free nursery places to toddlers.
Proposals have also been floated to abolish private schools, and ditch the school inspectorate, Ofsted.
Labour shadow chancellor, John McDonnell, also pledged to introduce free personal care for the over-65s, which would cost an estimated £6billion a year.
In another bold move, the party additionally announced this week to scrap the NHS prescription charge in England, which is estimated to cost more than £700million.
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How will Labour find the money to fund these proposals?
Labour have justified the proposals with their plans to increase taxes.
In their first Budget, should they get into power, Labour has said they will abolish non-dom tax cuts, with Mr McDonnell stating UK residents should pay their taxes “to support our public services and infrastructure”.
According to Telegraph reports, higher earners would be made to pay income tax rates more than 67 percent, and landlords will be forced to pay their tenants’ council tax bills.
According to reports from The Times, Labour’s bold spending plans could cost twice as much as what the party would raise through extra taxes.
Paul Johnson, director of the Institute for Fiscal Studies, told the publication the plans could cost £70 billion - £20billion above the amount the party pledged to raise in taxes at the last election.
Mr Johnson said: “I don’t think they would have got their £50 billion of tax increases.
“They might have got £30 billion to £40 billion.”