Labour urged to come clean on secret tax plans after paving way for post-election hikes
LABOUR was last night urged to come clean on secret tax plans after paving the way for post-election hikes.
Chancellor Jeremy Hunt demanded his opposite number Rachel Reeves lay out her entire economic blueprint to voters amid fears she is plotting a series of raids.
He is today effectively announcing the contents of the next Budget should the Tories defy the polls to win on July 4 – and has called on Ms Reeves to do the same.
It includes cutting National Insurance on workers and income tax for pensioners as fresh polling showed Rishi Sunak has lost half of OAPs who voted Conservative in 2019.
Mr Hunt claimed families would pay £3,190 more tax over the course of a five-year Starmer Parliament than if Mr Sunak was reelected.
The Tories ramped up their tax warnings last night after a senior Labour frontbencher suggested their spending plans may change once in power.
Shadow Cabinet Minister Nick Thomas-Symonds said: “We’ve been open, always, that we may open the books and discover the situation is even worse than it is at the moment.”
It has previously been reported that Labour is planning to use an initial Budget to insist worse-than-expected finances meant she had no choice but to put up taxes.
Top economist Paul Johnson last night said such a ploy “won’t wash” because the “books are wide open” currently and “fully transparent”.
Mr Hunt piled in: “Can you therefore confirm that, should Labour win the next General Election, in your first fiscal event you will not include any tax rises beyond those set out in your manifesto?”
Sir Keir Starmer’s manifesto pledges no increase in the rate of income tax, national insurance or VAT – but stops short of ruling out other hikes.
The Labour leader has specifically not ruled out raising capital gains tax, council tax and fuel duty when pressed during the campaign, only saying he has “no plans” for this.
He has insisted shortfalls will be made up through increased growth, last night setting his hopes on 2.5 per cent each year.
Mr Hunt last night said his tax cuts would be implemented next April, including cutting NICs to 7 per cent and abolishing stamp duty for first time buyers.
It also involves exempting pensioners from income tax amid concerns the Tories are losing support among this once reliable voter group.
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A survey by JL Partners found that Sir Keir Starmer and Rishi Sunak sit neck and neck among 66-70-year-olds on 23 per cent.
Just 49 per cent of 2019 Conservative OAP voters are planning to stick with them next week, with 22 per cent peeling off to Reform.