Share

UK labour party vows to raise £48.6bn in tax

London - UK Labour Party Leader Jeremy Corbyn pledged to raise £48.6bn in taxes on businesses and the wealthy to pour more money into health, education and infrastructure.

The main opposition party’s 128-page manifesto for the June 8 election promises £37bn of funding for the National Health Service, the abolition of university tuition fees, and the establishment of a National Investment Bank to lend £250bn over the next decade.

There will be an increase in income taxes on those earning more than £80 000 a year, and another one on earnings over £123 000; a hike by a third on corporation tax and a new levy on companies paying staff more than £330 000 a year.

“For the last seven years our people have lived through a Britain run for the rich, the elite and the vested interest,” Corbyn told a rally in Bradford, northern England on Tuesday. Labour’s program “will reverse our national priorities to put the interests of the many first.”

On June 8, voters will be electing a new government almost a year after a slim majority of the country chose to pull Britain out of the European Union. Prime Minister Theresa May called the snap vote, citing the need to strengthen her hand for Brexit talks, and polls show her Conservatives handing Labour its worst defeat since at least 1983.

Free education

A slew of nationalisations in the rail, water and energy industries capped Labour’s pitch with Corbyn offering a“radical and responsible” plan to contrast with May’s oft-repeated selling point of “strong and stable” leadership. The biggest cheers for Corbyn’s speech at Bradford University came when he announced he’d abolish university tuition fees and take control of the railways.

“The Conservatives have been holding Britain back. Low investment, low wages, low growth,” Corbyn said. “Labour will move Britain forward with ambitious plans to unlock the country’s potential.”

The party said it accepts last year’s referendum result for Britain to withdraw from the EU but it would scrap May’s negotiating position, prioritizing continued access to the single market and customs union.

Labour would immediately guarantee the rights of some 3 million EU citizens living in Britain, rather than making that contingent on a reciprocal guarantee for Britons abroad. It also ended its vacillation over immigration, accepting that the free movement of EU nationals to Britain would end after Brexit.

The party also promised increased regulation of taxi companies, including “national standards to guarantee safety and accessibility.” It said these would be updated “to keep pace with technological change and ensuring a level playing field between operators,” a reference to Uber Technologies.

More than 24 000 words long, the document mentions taxation 38 times. Here are the key takeaways from Labour’s programme for the next five years:

  • Raise income tax rates for earnings over £80 000 to 45% from 40%, and to 50% for earnings over £123 000.
  • Slap 15% tax on homes bought with offshore trusts.
  • Raise £1.5bn from value-added tax to pay for school fees.
  • Discourage excessive pay packages by charging companies 2.5% for paying employees more than £330 000. This would raise £1.3bn.
  • A “Robin Hood” tax to raise £4.7bn by extending a financial-transactions levy to cover derivatives and bonds.
  • Financial firms would be charged the tax at 0.2% on each transaction, while everyone else would pay 0.5%, the rate currently charged on stocks.
  • Retaining the so-called “triple lock” that guarantees pensions will rise every year by whichever is highest: the rise in earnings, inflation, or 2.5%.
  • Building 100 000 affordable homes per year for rent or sale.
  • Putting the railways back under government control as and when franchises expire.
  • Taking the energy transmission and distribution networks back into government control and setting up public gas and power utilities to compete with the private sector.
  • Nationalising water utilities Promising to derive 60% of UK energy needs from low-carbon or renewable sources by 2030 Hiring 10 000 new police officers and 3 000 new firefighters.
  • Consider introducing a land value tax as part of a review into local council tax and business rates.
  • Establishing a National Education Service along the lines of the NHS, to provide free education from the cradle to the grave.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.90
+0.2%
Rand - Pound
23.85
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.32
+0.2%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders