Brace for five years of tax rises if Keir Starmer wins the election, says left-wing think-tank – as Tories again dismiss panicky calls for pact with Reform after ‘crossover’ moment in poll
Keir Starmer could face five years of tax rises if he wins the election electionwarned a left-wing think tank.
Labor unveiled its manifesto yesterday with plans to increase charges by £8.5 billion to pump money into the services sector.
However, although it is promised that there will be no change to income tax, national insurance and social security VAT Sir Keir has refused to rule out moves on council tax and capital gains.
The Resolution Foundation has warned that the proposals pave the way for a parliament of tax rises and cuts to public services.
The comments came amid widespread criticism that neither side is being honest about the difficult choices facing the country.
Meanwhile, ministers have turned from panic to calm Tories today, after a poll showed a ‘crossover’ moment, with Reform leapfrogging the party.
Finance Minister Bim Afolami urged the vote to focus on who should be Prime Minister between him and him Keir Starmerafter YouGov research showed Nigel Farage‘s insurgents in second place.
Although it is just one widely anticipated investigation, the result has fueled unrest over the campaign within conservative circles.
It also derailed the party’s attempts to hit the nail on the head Work on tax plans after Sir Keir unveiled his manifesto yesterday.
The Resolution Foundation said: ‘Their current position paves the way for a parliament with further tax rises, difficult-to-implement cuts and the risk that a weaker productivity forecast from the OBR at the next budget event could force an incoming Labor chancellor into another one. must make difficult choices to meet their established fiscal rule to reduce debt within the fifth year of the forecast.”
Labour’s promises to increase government spending are largely in departments that are already protected, such as health, social care and education, the Resolution Foundation said.
Paul Johnson, director of the Institute for Fiscal Studies (IFS), suggested that achieving “real change” in Britain – Sir Keir Starmer’s flagship promise to voters – would require more funding than suggested in the policy document.
Johnson said some of Labor’s plans were better than “a shopping list of half-baked policy announcements” – an apparent reference to the Tories’ offer – but warned it would have to “put real resources on the table”.
“And Labor’s manifesto gives no indication that there is a plan for where the money would come from to fund this,” he said.
Commenting on Sir Keir’s launch of the policy document on Thursday, the IFS director said: ‘This was not a manifesto for people looking for big numbers. The increases in government spending promised in the cost table are small and trivial; the tax increases, apart from the inevitable reduction in tax avoidance, are even more trivial.
‘Under current forecasts, and especially with an additional £17.5 billion in borrowing over five years to fund the Green Prosperity Plan, this – within the budget line that Labor has signed up to – literally leaves no room for more spending than planned by the current government. government, and those plans entail cuts, both in investment expenditure and in expenditure on unprotected public services.’
Mr Farage is delighted to now be in charge of the main opposition, having emphasized the point in an ITV debate last night and in interviews this morning.
