Jeremy Corbyn's Labour party has finally revealed its full plans to dramatically hike tax revenues in government by almost £50bn, including a 50 per cent top rate on income tax.
The party revealed how it hoped to raise £48.6bn from taxes on businesses and higher earners. However, it did not provide the costing for its ambitions to seize control of the key industries, as these fall outside of a commitment to balance the books on day-to-day spending.
Corbyn confirmed today that the Labour party he leads would use the funding for investment into the NHS, to scrap university tuition fees, and to lift a cap on public sector wages.
But the party is also hinting at the potential for more dramatic reforms on business rates and council tax. A footnote in Labour documents today said that it will initiate a new review, which it says would "consider new options, such as a land value tax".
On Corporation Tax, the party had previously revealed plans to hike both the lower and higher rates. The headline rate would reach 26 per cent by 2020-21, while firms making profits of less than £300,000 will see their bills rise to 21 per cent. These increases are estimated to raise £19.4bn.
In addition, the party is vowing to undertake a further assessment of business tax reliefs, with better targeted programmes implemented alongside an ongoing programme of continual review for business tax. Labour says this would raise a further £3.8bn.
Business would also be forced to pay a further Excessive Pay Levy, a proportional charge hitting firms that pay staff more than £330,000, which Labour hopes would raise £1.3bn.
Finally on business charges, Labour is promising an Offshore Company Property Levy, which would target businesses overseas looking to acquire British residential property. Labour has cited a 15 per cent charge currently applied in Toronto, Canada, as one possible model to follow, and is estimating such a levy would raise £1.6bn.
And a tax avoidance programme, an almost annual promise from politicians in both Budgets and manifestos, is estimated to bring in £6.5bn.
In addition, shadow health secretary Jon Ashworth yesterday suggested that plans to hike Income Taxes would raise an eye-watering £4.5bn, but Labour costings today reveal the party in fact hopes to bring in £6.4bn.
Taken along with other charges, such as VAT on private school fees, and a £3.9bn allowance for behavioural change from taxpayers resulting from the Labour programme, the party adds all of these charges up to a total of £48.6bn.