Labor policy will cost 3p income tax increase

Rachel Reeves, Shadow Chancellor, said all expenses will be paid in full. Credit: Spencer Platt/Getty Images North America

Uncosted Labor Spending commitments would be equivalent to a 3d increase in income tax, according to the analysis.

i reported that the party's policy would require additional funding of 20 billion pounds. The analysis includes the cost of a policy raised by the shadow education minister to extend free childcare to children under 11.

On Wednesday evening, Labor disputed that this was party policy and denied that the cost of the policy would require a significant increase in income tax.

But Chancellor Jeremy Hunt tweeted: “Labour simply cannot promise such large additional spending without raising taxes, inflation and interest rates. rates.»

Shadow Chancellor Rachel Reeves promised that Labor's expenses would be paid in full.

i said the policy suggests they will need a 3d increase in income tax on top of what has already been promised through small tax increases, such as the introduction of VAT on private school tuition fees and the end of tax status without permanent residence.

IPPR reckoned: Tank puts the cost at almost £18bn, although taking into account the government's own childcare plans announced in the latest budget, the net worth would be more like £13.6bn.

A pledge to raise the foreign aid spending target to 0.7% of GDP after Rishi Sunak cut it to 0.5% would cost around £5.5bn; Party sources say this will only be implemented when it becomes possible.

Labour has promised to set up a £1bn 'reserve fund' for the energy industry and they will also have to spend around £1.7bn pounds. Bn on GP salaries if Shadow Health Minister Wes Streeting's plans to nationalize the family doctor network in England are implemented — something the party now says it won't do.

The party will struggle to deliver on its promises on spending without raising taxes, warned the head of the Institute for Financial Studies (IFS).

Sir Keir Starmer vowed not to borrow for day-to-day expenses and to reduce total public debt as a percentage of GDP.

Other current spending commitments, each of which will be less than £1bn, include an increase in the number of mental health workers, the recruitment of more police officers and the establishment of breakfast clubs. in every elementary school.