Labour's plan to raise £50bn in taxes "doesn't add up" according to the Institute for Fiscal Studies

Mark Sands
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Jeremy Corbyn Tours The UK On The Final Day Of The Election Campaign
The UK will head to the polls on 8 June. (Source: Getty)

Labour's plans of raising £50bn from taxes following the tomorrow's General Election have been demolished by the highly-respected Institute for Fiscal Studies, which also attacked the Conservatives for a lack of detail.

Jeremy Corbyn's party has promised to hike taxes on businesses and high-earners to fund a splurge that will be augmented by a further £25bn in borrowing.

However, with just hours to go before polls open, the IFS , which has previously claimed that neither party was being honest, has warned Labour's tax plans “don't add up”.

Speaking on the Today programme this morning IFS director Paul Johnson said: “They can’t raise the £50bn they say they would raise just from the increases that they say, so you can’t raise that amount of money just by taxing companies and a little bit on the rich...It absolutely doesn’t add up.”

He added: “In the short run you might be able to get quite a lot of it – whilst you couldn’t get the £50bn, in the short run you might get £30bn or £40bn and that is quite a lot, but in the long run, again you would probably be reducing investment.”

Read More: General Election 2017: Everything you need to know about voting tomorrow

Johnson also blasted Theresa May's Conservatives for failing to include details of their own plans in their manifesto published in the mid-May.

He admitted that because Tory plans will likely represent a continuation of the previous government's regime, less detail was necessary, but stressed: “There's almost nothing in the Conservative manifesto either on the tax or the spending side.”

Johnson also noted that May's party has failed to rule out increases in either national insurance or income tax.

“Whatever they may do, it's clear that they would be raising taxes an awful lot less, by many orders of magnitude less, than the Labour party is planning to do, but actually they've given us very little, essentially no detail on what that might look like,” he said.

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