Labour launches left-wing manifesto with huge tax assault

16 May

Education – £25.3 billion a year

Labour has promised to abolish university tuition fees, reintroduce maintenance grants and pour more cash into schools.

They have also pledged to introduce free school meals for all primary school children, no matter how rich their parents are, and put more cash into early years.

Major re-nationalisation programme – £10s of billions of pounds

Railways, water and energy companies, and the Royal Mail would all be re-nationalised under a Labour government.

Thames Water alone is valued at £12 billion, so the cost of bringing all the utilities and services back into public hands is likely to be hugely expensive.

At least one publicly owned energy company will be created in every region of the UK, while fracking will be banned – putting an early end to this potentially lucrative fresh energy source.

Infrastructure – £250billion over ten years

Labour will borrow to pump the cash into energy, transport and digital infrastructure.

This includes plans to improve 4G mobile coverage and invest to bring uninterrupted 5G to all urban areas, major roads and railways

Emergency services and crime – Over £300million

Promise to recruit an extra 10,000 police officers at a cost of £300m by 2021/22. 

Labour also promise to conduct a major review of counter-terror Prevent programme. 

They will also recruit another 3,000 firefighters.

Housing 

A promise to build one million new homes, including 100,000 council and housing association properties by the end of the next parliament. 

Rent rises will be capped to inflation and legal minimum standards in properties for rent, and 4,000 homes will be given to people with a history of rough sleeping. 

Work, Welfare and Pensions – £4.6 billion a year 

Scrap the bedroom tax and reinstate housing benefit for under-21s. 

Review cuts to Universal Credit and limits on payments to first two children of families.  

Paternity leave will be doubled to four weeks, paternity pay increased, maternity leave rights strengthened, and four new public holidays to mark patron saints’ days.

They will also keep the pensions ‘triple lock’ which ensures that the state pension goes up every year by inflation, average earnings to a minimum of 2.5 per cent – whichever is higher.

Tax / Savings – will raise £48.6bn

Corporation tax will be raised to 26 per cent by 2020/21, to bring in £19.4bn.

Income tax will be hiked, with a 45p  rate imposed on those earning over £80,000 and 50p on those on £123,000 a year or more, bringing in £6.4bn.

The ‘fat cat’ tax on firms paying employees over £333,000 will raise £1.3bn.

Offshore company property levy on homes brought by offshore trusts located in tax havens will bring in £1.6bn.

Cracking down on tax avoidance will bring in an estimated £6.5bn. 

Introduction of a ‘Robin Hood tax’ on financial transactions will bring in £5.6bn.

Efficiency review of corporate tax reliefs will bring in £3.8bn.

Reversing  cuts to capital gains tax, the inheritance tax, the bank levy, and scrapping the married persons’ tax allowance will raise £3.7bn.

Imposing VAT on private school fees will raise £1.6bn.

Other savings – £2.6bn

Uncertainty and behavioural change factored in to reduce tax receipts by £3.9bn.

Public pay increases – £4bn

Labour will abolish the 1 per cent cap on public pay increases at an estimated cost of £4bn. 

Pensioners – at least £60billion over ten years 

Labour opposes the planned increase in the pension age to 67, which is due to come into force in April 2028. 

This was anticipated to save the government £60bn over ten years.  

Health and Social Care: £7.7 billion a year 

Some £5bn a year will be spent on healtrhcare, including the abolitoin of hospital car pakring charges. 

Mental health services will be ringfenced, and the NHS Sustainability and Transformation Plans halted. 

Annually £2.1bn a year will go into social care and £600m will be spent on restoring nurses’ bursaries.

They promise to scrap 15-minute care visits scrapped and increase the Carer’s Allowance to be in line with Jobseeker’s Allowance. 

Defence: 

The party supports the renewal of Britain’s nuclear deterrent Trident, despite the personal opposition of Jeremy Corbyn and John McDonnell. 

But it has added a bizarre clause which stresses that ‘any prime minister should be extremely cautious about ordering the use of weapons of mass destruction which would result in the indiscriminate killing of millions of innocent civilians’.

Will keep the Nato pledge to keep defence spending as 2 per cent. 

Immigration: 

Will abandon the Tory government’s commitment to get net migration down to the tens of thousands.

Instead Labour says it will implement ‘fair immigration rules’ and will not make ‘false promises’ on numbers.

Concedes that freedom of movement will end when Britain leaves the EU and that the UK’s immigration system ‘will change’.

Income thresholds for family members replaced with an obligation to ‘survive without recourse to public funds’.

Creation of a Migrant Impact Fund to support public services in host communities. It will be funded by visa levies and a contributory element from residence visas for high net worth individuals. 

Executive pay:

A 20:1 limit on gap between the lowest and highest paid workers in companies given Government contracts. 

A new ‘fat cat tax’ will be imposed on big businesses such as city banks and premier League clubs. 

They will be charged a 2.5 per cent levy on earnings over £330,000 and 5 per cent of those earning above £500,000. 

Workers’ rights 

Creation of a Ministry of Labour to deliver investment in enforcing workers’ rights and introduce ‘sectoral collective bargaining’ through unions. 

Zero hours and unpaid internships will be banned, the minimum wage will be upped to the living wage – reaching at least £10 by 2020.  

Brexit

Labour say they accept the result of the referendum but rules out leaving the EU with no deal.

They will immediately and unilaterally guarantee the rights of EU nationals living in the UK – even if Britons living abroad on the bloc do not have their rights protected.

They will prioritise trying to keep the ‘benefits’ of staying in the single market and customs union.

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