Labor Does Not Rule out Seventeen Tax Increases – and Everything the Manifesto Ignores

By Elliefrost @adikt_blog

Labor is "secretly" planning to raise 17 taxes, the Tories claim, as Sir Keir Starmer faces questions about what is missing from his manifesto.

Laura Trott, the principal secretary at the Treasury, accused Labor of planning tax raids on homeowners, businesses and consumers.

At an emergency press conference, she said Sir Keir is preparing to announce increases in capital gains, stamp duty and council taxes after the election.

Ms Trott said: "On each of these tax increases, the Labor manifesto deliberately makes no commitment not to increase them.

"If he wins, it is clear that Keir Starmer will want to cynically claim that the books he inherited are far worse than he thought as a justification for imposing tax rises he hasn't told you about."

Labor has repeatedly insisted it has no such plans, but has only categorically ruled out increases in income tax, national insurance and VAT. On Friday, the party also ruled out capital gains taxes on the sale of single-family homes.

Darren Jones, the shadow Treasury chief, said the Conservatives were "spending their time talking about things they imagined".

None of the seventeen possible tax increases highlighted by the party are in the Labor manifesto.

Pensions - four possible tax increases

Labor has refused to deliver on the Tories' promise of a "triple lock plus", meaning pensioners will have to pay income tax on the state pension for the first time from 2027.

The Conservatives have pointed out that Sir Keir has also failed to rule out phase-out rules that would allow people to take the first 25 percent of their pension pot as a tax-free lump sum.

In addition, they have accused him of overseeing a raid on pension contributions, either by cutting tax credits or applying national insurance to employer contributions.

Family homes - four potential tax increases

The Tories have suggested that Labor can raise money by increasing council tax. This could be done by increasing the number of bands to charge more valuable houses.

Alternatively, Sir Keir could reduce council tax rebates, for example for single occupancy, or take the more nuclear option of ordering a nationwide council tax revaluation.

Another tax the Labor leader has not ruled out is an increase in stamp duty.

Utility bills - one potential tax increase

In their manifesto, the Conservatives ruled out introducing new green levies on consumers and said the cost of existing levies would be reduced.

They say Labor has failed to deliver on this promise, raising the possibility it could raise money by introducing extra taxes on businesses or energy bills.

Businesses and jobs - seven potential tax increases

The Tories claim that Sir Keir, having ruled out an increase in taxes on working people, is instead eyeing a series of potential tax rises for businesses.

They say he has failed to rule out an increase in capital gains tax on assets sold by companies, or an increase in national insurance contributions for employers.

The party has also suggested that Labor could scrap a range of investment exemptions for businesses, plus inheritance taxes for farmers and small business owners.

Cars - one potential tax increase

The Conservative manifesto commits to reversing Sadiq Khan's expansion of Ulez and banning councils from introducing a road tax.

They have accused Labor of planning to roll out such plans across the country, even as Sir Keir criticized last year's Ulez expansion.

Which the Labor manifesto leaves out

The Tory attack on taxes came after questions were raised about Labour's manifesto, which left out details of the party's plans in other key policy areas.

Legal migration

Sir Keir has pledged to reduce net migration from the current record of more than 700,000, but has refused to say by how much he would reduce net migration.

He has also outlined plans to reform the points-based immigration system, but has not provided many details beyond imposing "appropriate restrictions" on visas.

Meanwhile, plans to develop skills strategies for domestic workers to reduce dependence on foreign workers are only mentioned for the health, social care and construction sectors.

Small boats

On illegal migration, Labor has repeatedly promised to scrap the Rwanda plan, without saying what it would do to the migrants deported under it.

The plan is to use the money used for that scheme to instead pay for a new border security command, which it says would "crush" the smuggling gangs.

But apart from putting more resources into the UK enforcement side, the party has given few details about how it would approach things differently from the current government.

In particular, the country has pledged not to abandon the European Convention on Human Rights, which has repeatedly influenced Tory plans to deport illegal migrants.

Agriculture

The manifesto contains just 87 words on agriculture and almost no detail on how Labor would help British farmers through financial difficulties.

It does not say what the party would do with the subsidies, except to say that the current system 'would work for farmers and nature'.

The dossier also says Labor will "work with farmers and scientists" to eradicate bovine tuberculosis and "end the ineffective badger cull", but it does not set out how.

Education

The manifesto does not state Labour's position on tuition fees, and falls short of not raising tuition fees as universities face a funding crisis.

It also does not include measures to reduce the level of student loan repayments, something the party had previously pledged to look into.

Private schools did not specify when the introduction of VAT on tuition fees would be introduced, despite Sir Keir saying it would happen "immediately".

Advantages

Sir Keir's plans for welfare reform are equally vague after he was forced to abandon his initial pledge from the Labor leadership to abolish Universal Credit altogether.

The manifesto only promises to review how the system works and to "reform employment support" by making changes to the way job centers work.

It also commits to "reforming or replacing" the Work Capability Assessment, which determines eligibility for sickness benefits, but does not say how.

Defense

On defense, Sir Keir has pledged to increase spending to 2.5 percent of GDP, but it is unclear when he will do so as he has refused to meet the Tories' 2030 target.

Brexit

On Brexit, the party has said it will not re-enter the single market but wants separate agreements on food exports and professional qualifications.

But the Labor leader has suggested his ambitions go well beyond what is in the manifesto, arguing that "everything will have to be negotiated" with the EU.

The manifesto also leaves a number of questions open about Brexit, as it commits to "removing unnecessary trade barriers" with Europe.

Labor has repeatedly said it will not return Britain to the single market but wants separate agreements on food exports and professional qualifications.