The election manifestos of both the Conservative party and Labour party fail to provide adequate detail about the consequences of their policy proposals, according to the Institute for Fiscal Studies (see http://bit.ly/2qmLnIY).
The Conservatives’ aim of a balanced budget by the mid-2020s is likely to require more spending cuts or tax rises than their manifesto makes explicit, even beyond the end of the next parliament. The party’s few tax proposals around personal allowances would result in modest tax reductions across the board. Abandoning the ‘tax lock’ will now allow a Conservative government to raise income tax and NICs.
Labour’s plans for large tax increases to pay for higher spending would affect ‘broad segments of the population’, rather than just a small group at the very top, as their manifesto suggests. Their target of £49bn a year, the IFS says, includes ‘some factual mistakes’ regarding tax avoidance, ‘optimistic assumptions and unspecified tax increases’. The IFS estimates that Labour policies would raise £40bn at most in the short run, and less in the long run.
The election manifestos of both the Conservative party and Labour party fail to provide adequate detail about the consequences of their policy proposals, according to the Institute for Fiscal Studies (see http://bit.ly/2qmLnIY).
The Conservatives’ aim of a balanced budget by the mid-2020s is likely to require more spending cuts or tax rises than their manifesto makes explicit, even beyond the end of the next parliament. The party’s few tax proposals around personal allowances would result in modest tax reductions across the board. Abandoning the ‘tax lock’ will now allow a Conservative government to raise income tax and NICs.
Labour’s plans for large tax increases to pay for higher spending would affect ‘broad segments of the population’, rather than just a small group at the very top, as their manifesto suggests. Their target of £49bn a year, the IFS says, includes ‘some factual mistakes’ regarding tax avoidance, ‘optimistic assumptions and unspecified tax increases’. The IFS estimates that Labour policies would raise £40bn at most in the short run, and less in the long run.
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