Labour tax warning

Tax warning over Labour spending plan Research suggests that Labour’s vow to boost government spending, end austerity and reverse most benefit cuts would come with large tax hikes. Leader Jeremy Corbyn has pledged £250bn of extra spending in the next decade under a Labour government but analysis shows that a separate pledge to cut public debt would mean tax increases would be required to provide the extra spending. The FT analysis suggests Labour would need to find at least £26bn in new tax rises to deliver its measures and live within its own budgetary rules. Deputy Conservative chairman Paul Scully said Mr Corbyn's “ideological” plans would see “huge tax hikes for working people.” “From income tax to new taxes on homes, Labour would once again hit people in the pocket with a raft of tax raids," he added. Meanwhile, Matthew Lynn in the Telegraph considers the impact a Labour government under Jeremy Corbyn and shadow Chancellor John McDonnell would have on the economy, noting that corporation tax would be increased to 26% from 19% and that the top rate of tax would be increased “and many more people would be swept up in its net”.