Labour plan on introducing £12,000 tax hike for Middle Britain
LABOUR is today expected to signal a drive towards huge tax hikes for Middle Britain.
Tom Watson speaking yesterday
According to the Tories its “disastrous” policies would cost the equivalent of more than £12,000 for every working family.
The Conservatives unveiled their attack ahead of today’s much-anticipated keynote Labour conference speech by new Shadow Chancellor John McDonnell.
The hard-Left maverick is expected to confirm he backs tax hikes for the better-off and companies in what he will say is a drive to ensure the proceeds of growth are “shared more equally”.
Setting out what he is expected to call a “new economics”, he will hit back at opponents’ claims of economic recklessness by promising a Labour government would tackle the deficit and live within its means while also investing to grow the economy.
John McDonnell (left) is set to give a speech today at the conference
He will promise a “radical review” of Britain’s economic institutions to build a stable economy, although he is expected to guarantee the Bank of England will remain independent.
Mr McDonnell will also pledge to “change the economic discourse”, through a “national debate” on finding a real alternative. But he will try to counter accusations of being anti-business by promising to bring wealth-creators, workers and firms together to promote a sustainable and entrepreneurial state.
The veteran MP has previously backed a 60 per cent tax rate on incomes over £100,000 and a wealth tax on the richest 10 per cent, although Mr Corbyn has indicated he prefers a 50p top-rate income tax.
The Shadow Chancellor has favoured nationalising all banks, railways and utility companies.
Labour conference held at the Brighton Centre
This isn’t an economic policy so much as a recipe for disaster for Britain and your family
Mr McDonnell has also spoken in favour of scrapping student tuition fees and restoring maintenance grants, funded by a seven per cent National Insurance hike for those earning over £50,000 a year or a 2.5 per cent corporation tax.
The Tories’ analysis claimed five key policies set out during Jeremy Corbyn’s leadership campaign – nationalising Royal Mail, energy providers and rail, reversing the Government’s £12billion welfare savings and scrapping tuition fees – added £218billion to public spending.
Labour leader Jeremy Corbyn wants to reverse Tory cuts to things like inheritance tax
But so far Mr Corbyn had suggested only three revenue-raising rises – corporation tax, National Insurance and reversing Tory cuts to inheritance tax which would, in all, raise just £9billion.
This left more than £209billion to be raised over five years through extra borrowing or higher taxes, a total equivalent of £12,095 for every working household.
Labour Deputy Leader Tom Watson, who is at odds with Mr Corbyn on some key policies, told a fringe meeting yesterday, to applause: “Be in no doubt if you were before – Labour is now an unashamedly, unapologetically, avowedly an anti-austerity party.”
Conservative Chancellor George Osborne said: “This isn’t an economic policy so much as a recipe for disaster for Britain and your family.”