Election - tax news 1

 Tax rises to fund Labour’s £50bn manifesto pledge

Labour has unveiled pledges costing £48.6bn - to be funded from extra tax revenue - in its election manifesto. Jeremy Corbyn said his party would invest billions more in schools and the NHS, as well as expanding free childcare and scrapping university tuition fees. The income tax rate would rise to 45p for earnings above £80,000 and then to 50p in each pound earned over £123,000. Mr Corbyn said the income tax levels would raise up to £6.4bn a year. Labour would also impose levies on companies with excessive pay, raise corporation tax to 26%, crack down on tax avoidance and end corporate tax relief. The Conservatives said Labour’s plans will “bankrupt Britain,” and Paul Johnson, director of IFS, warned: “The chance of getting £50bn are pretty small.” Carolyn Fairbairn, director-general of the CBI, added that the tax measures "will work against the UK"s ability to attract and retain talent or set the conditions for businesses to thrive and create jobs".

Source:   Financial Times (17/05/2017)