June 12th 2024 8:58 pm

Written by Louise Harrison

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Green Party Manifesto Plans For Tax

Greens propose increasing taxes for higher earners and the very wealthy to fund big spending plans. Let's see how this affects your pay.

You can compare the tax policies of the four leading political parties including the Greens, using our new UK Election 2024 Tax Calculator.

The Green Party's Co-leaders today launched their manifesto for the 2024 Election next month and gone are the days where the main parts of their manifesto was focused on just 'green' policies. Though, a move toward incentivising ditching the car is stated with £2.5 billion put forward for walking and cycling infrastructure.

Rather than copy the Conservatives and likely the Labour Party and talk about cutting taxes as a way to sway voters, the Greens are focused on increasing taxes in order to spend and rectify the nation's pressing issues such as the cost of living and the troubled NHS.

In order to raise the funds to revolutionise the country the Greens propose a simplification of the tax system, with a lean toward taxing the highest earners and wealthiest more.

A one percent charge would be applied on people holding assets of over £10 million, or two percent on assets held over £1 billion. The charge would be annual, and considering the vast wealth required to be liable to the tax, would effect an incredibly small proportion of people.

Income taxes are currently charged at 20, 40 or 45 percent in England and Wales. Conversely, capital gains (which covers investments including shares and property) is charged at either 10 or 20 percent (or 18 and 24 percent if paid by a higher rate taxpayer). The Greens propose aligning the rates of income tax between regular income and capital gains so both sets of income incur tax at the same rates.

The alignment of income and non-income taxes would also include NICs, so capital gains would be taxed to include the 20, 40 and 45 percent rates plus the NIC rates (currently 8 percent for PAYE).

A big change proposed would be to remove the upper earnings limit. This currently reduces the rate at which national insurance contributions are paid for higher earners (2 percent rather than 8 percent). Removing the UEL will significantly raise the amount of tax paid by higher earners.

These changes would raise £50-70 billion per year for the Treasury.

An additional Carbon Tax (£120 per tonne of carbon emissions) would raise an extra £80 billion. The Greens want 70 percent of the UK's electric to come from wind by the end of this decade.

The minimum wage would be raised to £15 an house, regardless of age - and the Greens would reduce the rate at which employers pay their national insurance contributions on employee wages to fund this. This would be coupled with the implementation of the 4-day working week.

Universal credit and associated benefits would be increased by £40 a week, also removing the two-child claim limit. Disability benefits would be raised by 5 percent and the bedroom tax abolished. The Greens have a long-term vision to introduce Universal Basic Income.

Children to receive free school meals and free breakfast clubs up to age 10 (Year 6). People under-18 would get free bus travel.

The Greens want to build more homes for social renting to help people stuck in the housing market. Councils are to be given powers to compulsory purchase empty property for this, as well as make acquisitions from the private rental market. Greens also want to introduce rent controls.

Tomorrow will mark the release Labour's manifesto so all the main parties proposals will be ready and on hand for the electorate to decide come July 4th. We will then examine and compare the published plans more closely.

You can read the full Green Party manifesto as published on the Green Party website.

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