Tories challenge Labour to rule out Capital Gains tax hikes on day of manifesto launch

Labour will use their manifesto launch today to commit the party to kickstarting economic growth and reforming Britain’s economy.

Set to be launched by Sir Keir Starmer in Greater Manchester, the launch will be an exercise in risk mitigation and avoiding rows that may damage the party’s commanding poll lead.

Speaking ahead of his big speech, Sir Keir Starmer said that economic growth will be at the heart of his party’s election offering.

He warned: “Some people say that how you grow the economy is not a central question - that it’s not about how you create wealth, but how you tax it, how you spend it, how you slice the cake, that’s all that matters”.

“So let me be crystal clear - this manifesto is a total rejection of that argument, because if you transform the nature of the jobs market, change the infrastructure that supports investment into our economy, reform the planning regime, start to unlock the potential of billions upon billions in projects that are ready to go, held up by the blockers of aspiration, then that does so much more to our long-term growth prospects.”

The Labour leader reiterated his promise that he has changed the party from its days under Jeremy Corbyn, into a party of growth, pro-business, pro-worker and wealth creation.

Among the key policy areas will be the previously announced pledges on economic stability, cutting NHS waiting times, a new Border Security Command, Great British Energy, cracking down on antisocial behaviour and 6,500 new teachers.

While the party has pledged not to raise income tax, national insurance or VAT, Labour remains dogged by concerns over potential rises to other taxes, not least capital gains and those levied on pensioners.

New figures revealed today show that Labour has tried to block over £6,000 of tax cuts for each working person since 2010.

Despite accusing the Conservatives of raising taxes to pay for the pandemic, Labour has voted almost a dozen times against Tory tax cuts, not least personal allowance threshold increases which the Government has raised from £6,045 to £12,570 today.

Rachel Reeves herself voted against these changes on at least 11 occasions. Chief Secretary to the Treasury Laura Trott blasted: “Not only have Labour admitted they would not cut taxes but their record shows they have failed to back our tax cuts to the personal allowance, worth over £6,000”.

“I am proud that we have almost doubled the personal allowance since 2010, helping people keep more of the money they earn.

“And now, if they win, they will have to put up taxes by £2,094 for every working family because their sums don't add up."

Ahead of Labour’s manifesto launch, the Conservatives had called on their opponents to rule out any increases to Capital Gains Tax and Employer National Insurance - something the party has repeatedly refused to do.

According to Tory sums, Labour has new refused to rule out rises to these taxes 39 times, in stark contrast to their assurances over VAT and income tax.

Jeremy Hunt, Chancellor of the Exchequer, said: “Ultimately it’s not businesses that pay taxes, it’s people. That’s why we’re guaranteeing not to raise taxes on businesses and jobs in the next parliament, and I’m challenging Labour to rule these tax hikes out too”.

“If they don’t, this is just further proof that Labour is planning to fill the £38.5 billion black hole in their spending promises by hiking taxes by at least £2,094 for every working family. So if you think Labour will win, start saving.”