Labour leader Jeremy Corbyn on Tuesday (16/5/17) launched the Labour Election Manifesto for 2017 detailing plans to renationalise public services, increase NHS funding and scrap tuition fees for students.
In the Manifesto, Corbyn makes a number of tax pledges including plans to lower the threshold for income tax from £150,000 to £80,000 and a 45 pence income tax rate for those on more than £80,000 and 50 pence for earnings over £123,000.
Labour also pledge to introduce a pay levy to sway companies from paying excessive salaries to staff. Companies paying staff £330,000 will pay a 2.5 per cent surcharge and salaries above £500,000 will be charged 5 per cent. The pay levy is designed to reduce inequality by restricting very high pay, this will only apply to firms with high numbers of staff.
An increase in corporation tax from 19% to 26% and a £26 billion Robin Hood Tax on financial transactions that is intended to help raise money for public services.
Corbyn’s manifesto also pledges to renationalise water, energy, railways and the Royal Mail, in addition to investing £8 billion in care services over the next parliament including £1 billion in the first year.
Labour will also act immediately to end what Corbyn refers to as the worst excess of conservative government changes to welfare including scrapping the bedroom tax. He will also restore housing benefits for under 21s, pledging a further £2 billion to combat the worst effects of the Conservatives cap on benefits.
Other pledges also include a tuition fee scrap and plan to reintroduce the maintenance grant for students, an end to zero hour contacts and a scrap the 1% public sector pay cap.
Brexit is also mentioned in the manifesto with Labour pledging to refuse to leave the European Union with no deal in place.
100,000 affordable homes will also be built every year under a Labour government.
The pledges costing £48.6 billion will be funded on extra tax revenue from corporation tax rises, a crackdown on tax avoidance and excessive pay levy on salaries above £330,000. Chancellor of Exchequer, Philip Hammond has today (17/5/17), responded to labour’s spending plans claiming that they did not make sense and the party’s plans will leave a fiscal gap of £58 billion.