POLITICS

Labour Pledges Not To Raise Vat, National Insurance Or Income Tax For Most If Elected

As well as no income tax rise for 95% of voters.

06/05/2017 22:01 BST | Updated 07/05/2017 08:31 BST

Labour has promised not to raise VAT or personal national insurance contributions and will not increase income tax for those earning less than £80,000 a year.

Under the plans, to be announced by John McDonnell at the Museum of London Docklands on Sunday, 95% of taxpayers would be protected from a rise in income tax over the next parliament.

The shadow chancellor is set to say: “If Labour is elected next month we will guarantee that for the next five years there will be no tax rises for income taxpayers earning less than £80,000 a year, no hikes in VAT, and no changes in your National Insurance Contributions either.

PA Wire/PA Images
John McDonnell 

“The Labour Party is now the party of low taxes for middle and low earners, while the Tories are the party of tax handouts for the super-rich and big corporations.

“That is why every time Theresa May and the Tories are asked whether they are planning tax increases if they are re-elected on 8th June, they run and hide.

“They are so determined not to be questioned on their plans, the Prime Minister refuses to take part in any TV debates and will only visit workplaces if there are no workers there, just her own party’s activists.

“The Tories are hoping that the British people can be kept in the dark about what the tax increases they are planning will mean for those on middle and low incomes, who have had to bear the brunt of seven years of austerity.

“Only the Labour Party is promising to stand up for working people, the majority in our country, while the Tories have made clear they are determined to carry on handing out tax giveaways to a wealthy few.”

The announcement comes after the Liberal Democrats said they would raise income tax in order to pay for social care.

Tim Farron said on Saturday that an extra £6bn a year would be spent to “rescue” the service. It would be paid for with a 1p rise on all rates of income tax.

The Conservative said the Lib Dem plan would hit 30 million people with an unwanted tax increase.

Last weekend, Theresa May signalled she will ditch David Cameron’s “tax lock” that committed the Conservative Party to not raise VAT, income tax or National Insurance.

The prime minister did rule out raising VAT should she win the election, however she avoided making similar pledges on National Insurance or income tax.

May also hinted she would ditch Cameron’s pensions “triple-lock” method of increasing pensions.