The Shadow Chancellor has set out Labour’s economic vision of a “Richer Britain” and a “Big Deal to Upgrade the Economy”.
Labour’s plans to upgrade and transform Britain’s economy will be underpinned by a commitment to protect middle and low earners’ incomes by announcing a “personal tax guarantee”, which will pledge that a Labour Government will guarantee to rule out rises in the following taxes in the next parliament:
· VAT (Standard rate)
· Income Tax on those earning below £80,000 a year
· Personal National Insurance Contributions
Under Labour’s plans 95 per cent of taxpayers will be guaranteed no increase in their income tax contributions and everyone will be protected from any increase in personal National Insurance Contributions and VAT.
Only the highest earners, the top 5 per cent of taxpayers, will be asked to contribute more in tax to help fund our public services that have suffered at the hands of seven years of Tory austerity.
John McDonnell, Labour’s Shadow Chancellor, said:
“The choice at this election is very clear on tax, as there is currently only one party which is committing not to raise taxes on middle and low earners - and that is the Labour Party.
“If Labour is elected next month we will guarantee that for the next five years there will be no tax rises for income taxpayers earning less than £80,000 a year, no hikes in VAT, and no changes in your National Insurance Contributions either.
“The Labour Party is now the party of low taxes for middle and low earners, while the Tories are the party of tax handouts for the super-rich and big corporations.
“That is why every time Theresa May and the Tories are asked whether they are planning tax increases if they are re-elected on 8th June, they run and hide.
“They are so determined not to be questioned on their plans, the Prime Minister refuses to take part in any TV debates and will only visit workplaces if there are no workers there, just her own party’s activists.
“The Tories are hoping that the British people can be kept in the dark about what the tax increases they are planning will mean for those on middle and low incomes, who have had to bear the brunt of seven years of austerity.
“Only the Labour Party is promising to stand up for working people, the majority in our country, while the Tories have made clear they are determined to carry on handing out tax giveaways to a wealthy few.”