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Election tax plans

printer Mail

The main political parties have not yet published their manifestos for the forthcoming general election, but plans for taxation measures have begun to take shape in a number of statements so far.

The Conservative party:

  • has ruled out increases in VAT, but there is no guarantee that the ‘tax lock’ for income tax and NICs will be maintained.

The Labour party:

  • proposes tax increases for the ‘top 5% of taxpayers’, thought to mean those earning more than £80,000; according to IFS director Paul Johnson, this would raise less than £1bn;
  • no increases in income tax, NICs or VAT for the other 95%;
  •  introduction of VAT on private school fees; and
  • suggestions that corporation tax would increase from 19% to 26% by the end of the decade.

The Liberal Democrats:

  • an immediate increase of 1% on all rates of income tax; and
  • a dedicated ‘health and care tax’.
Issue: 1353
Categories: News