The Labour party's plans to increase corporation tax will result in a £3.5bn "tax bombshell" for London, the Conservatives warned today.
Labour leader Jeremy Corbyn has pledged to increase corporation tax from 19 per cent to 26 per cent, a hike he hopes will bring in £19.4bn.
But according to the Conservatives' analysis, Corbyn's plan will hit London business with a tax hike of £3.5bn. More than 208,000 small businesses would be affected, and each would have to pay up to £12,000 per year.
Chancellor Philip Hammond said: "Jeremy Corbyn is preparing a tax bombshell that will hit London businesses hard. His plans to hike corporation tax will hammer investment in the capital and put jobs at risk."
And, the Institute for Fiscal Studies (IFS) has said that the Labour manifesto might not raise as much money as Corbyn is aiming for.