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This morning the Labour Party was the last of the leading political parties to throw their manifesto into the pre-Election pot.
The fully costed document is Labour's response to over a decade of Conservative rule and directly addresses the latter's failings. The spending plans detailed require raising revenue and we'll start with how Starmer put forward their plans to pull income into the Treasury. Plans that include having only one major fiscal event per year where tax and spending proposals are put forward well in advance, to allow people and businesses to accurately forecast their finances.
The manifesto states that whilst the Conservatives have ploughed ahead with further 'unfunded' tax cuts in a last-ditch attempt to win over voters, the Labour party will not repeat the disaster of the Liz Truss and Kwasi Kwarteng Budget.
The minimum wage will become a single living wage that applies to all age groups (from age 18 up). Triple-lock will be retained for state pensions. Universal credit will be reviewed to 'make work pay and tackle poverty'. First time buyers will have a permanent mortgage guarantee introduced.
There are no plans to raise an and income tax, national insurance or VAT - but rather a plan to modernise HMRC and raise £7 billion in tax revenue by clamping hard on tax avoiders, evaders and closing the non-dom loophole. Offshore trusts used to avoid inheritance taxes will become illegal. Rather than cut taxes, Labour want to focus on reducing energy, food, and housing costs.
A windfall tax will be levied on the large oil and gas companies. They are committing to also raid private schools by removing the exemption on VAT and business rates there.
Stamp duty will be raised by one percent but only on purchases of residential property being made by non-UK residents, whilst 1.5 million new homes are promised to be built by the end of the next parliament.
The income raised from the above will directly be invested in the following:
- NHS modernisation (40k more appointments, 700k more dentist appointments, doubled CT and MRI scanners, 8,500 new mental health staff).
- Free breakfast clubs in primary schools.
- 6,500 new expert teachers, with increase teacher and headteacher training.
- Reform of OFSTED, work experience for the young, 3k new nurseries and mental health hubs at schools.
- A nationalised Great British energy company, a national wealth fund, warm homes plans.
Aside from raising revenue, plans to implement efficiency changes and cutting waste within governmental departments are costed to fund:
- 13k new PCSOs, clear asylum backlog, border security command units.
- Fix up to 1 million potholes per year.
For businesses eager to see how the Labour Party will support them, Corporation Tax is to remain capped at the current main rate of 25 percent - we assume the small business rate of 19 percent could be changed. Full expensing will remain as well as the annual investment allowance.
Once existing rail contracts expire, railways will be nationalised.
You can read the full Labour Party manifesto on the Labour Party website.