Labour would raise taxes for 12m workers The Shadow Chancellor has welcomed a report calling for a tax hike for those earning more than the £28,080 public sector average to fund a £32bn spending spree on public services. The move would cost almost 12.5m workers £2,500 extra in tax. John McDonnell called the Time for Demand report, which also calls for the £12,500 income tax free personal allowance to be axed, "an ambitious plan for economic transformation". Tory party chairman James Cleverly commented: "These proposals would hammer millions of workers with tax hikes, as well as abolishing the tax-free income allowance, leaving people with less money in their pockets. This once again shows why Labour can never be trusted to handle our economy."