Jeremy Corbyn's Labour party publishes its plans to raise £48.6bn in taxes at manifesto launch

 
Mark Sands
Follow Mark
Jeremy Corbyn Out On The Stump In Yorkshire
The UK will head to the polls on 8 June (Source: Getty)

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.

Labour has committed to a wide-ranging plan of tax increases, as well as a nationalisation programme expected to take in the National Grid, Royal Mail, and both rail and water companies.

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".

Read More: Leaked Labour manifesto reveals General Election plans

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.

Read More: Jeremy Corbyn will aim for another tax raid on the City

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.

Related articles