UK and International Tax news

Labour Party Manifesto – Tax and Spend

Wednesday 26th June 2024

The UK Labour Party published its 2024 Manifesto on 13 June 2024 and its plan to change Britain by kickstarting economic growth, reforming Britain’s economy and bring about a decade of renewal.

Labour’s plan states it is a “fully costed, fully funded, credible plan to turn the country around after 14 years of the Conservatives. It contains a tax lock for working people and a pledge not to raise rates of income tax, national insurance or VAT”.

The manifesto includes six ‘First Steps’ including delivering economic stability, cutting NHS waiting times, launching a new Border Security Command, setting up Great British Energy, cracking down on antisocial behaviour, and recruiting 6,500 new teachers.

There will be the introduction of a new industrial strategy to boost investment with an injection of £7.3bn over the term to upgrade ports and build supply chains across the UK, invest in new gigafactories in the automotive industry, rebuild the UK’s steel industry, accelerate deployment of carbon capture and support the manufacture of green hydrogen.

As far as taxation is concerned, Labour’s fiscal plan refers to “rules which are non-negotiable and will apply to every decision taken by a Labour government. This means that the current budget must move into balance, so that day-to-day costs are met by revenues and debt must be falling as a share of the economy by the fifth year of the forecast”.  However, the manifesto sets out relatively modest tax and spend plans.

Tax raising measures total £7.350bn from closing non dom tax loopholes and reducing tax avoidance, levying VAT and business rates on private schools, increasing the tax rate on carried interest, and increasing stamp duty on residential property purchases by nonresidents.

Proposed public spending plans total £4.835bn which Labour say is “a prudent approach in line with our commitment to economic stability”.

There is also a Green Prosperity Plan for £4.70bn, to be funded by a windfall tax on the oil and gas sector of £1.30bn and £3.50bn coming from “responsible borrowing”, to invest in higher private investment and boost economic growth.

If you would like more information on the above, please contact Keith Rushen on 0207 486 2378.

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