Last week the Conservative Party released analysis which claimed Britons would “suffer” because of the Labour Party‘s runaway spending bonanza, which could blow a huge £1.2trillion hole into the pocket of taxpayers. It assumes Labour would allocate just over half of this (£651billion) of this to day-to-day Government spending. The Tories argue, according to current tax levels and with Labour’s own borrowing rules, the party would only be able to raise £277billion – leaving a massive shortfall of £374billion.
Taxing an extra £2,400 per person every year could mean a whole host of eye-watering tax hikes on everything from your monthly payslip, to moving home, flying away for a holiday or driving to work
Boris Johnson’s party has divided that figure by the 31,199million taxpayers in the UK to put a cost of £12,000 per person over five years to close the gap – working out at £2,400 a year.
The TaxPayers’ Alliance issued a huge warning over Labour’s “tax grab”, advising Britons to prepare for “eye-watering tax hikes” if Jeremy Corbyn and Labour win the next general election and take the keys to 10 Downing Street.
Political Director James Roberts told Express.co.uk: “Being threatened with a £1.2trillion tax grab shows the election spending spree has gone a step too far.
“Taxing an extra £2,400 per person every year could mean a whole host of eye-watering tax hikes on everything from your monthly payslip, to moving home, flying away for a holiday or driving to work.”
Labour manifesto: Jeremy Corbyn has come in for stinging criticism over the party’s spending plans (Image: GETTY)
Labour manifesto: Jeremy Corbyn has made several party spending pledges (Image: GETTY)
Chancellor Sajid Javid accused Mr Corbyn of a “reckless spending spree” that would “open up a huge black hole in the nation’s finances and hardworking people will be the ones that suffer”.
He said: “In order to pay for his policies, he will not only have to massively increase borrowing and debt, but he will also need to hike up taxes by £2,400 per person – this is equivalent to an entire month’s pay for the average earner.
“The British people have made huge progress over the last decade in repairing the damage left to us by the last Labour Government. If Jeremy Corbyn gets into power he would throw all that hard work away.”
But Labour’s Shadow Treasury Minister Jonathan Reynolds hit back at the Tory analysis, and raged: “This is more fake news from Conservative HQ after Sajid Javid had his plan to use the civil service for party political ends scuppered.
“Labour will set out our plans and our costings fully when we release our manifesto.
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Labour manifesto: Sajid Javid launched a furious attack against the opposition party (Image: GETTY)
“The Conservatives should spend more time looking at their own policies as they failed to produce costings at the last election and – as Kwasi Kwarteng demonstrated – have no idea about the cost of their own policies.”
Mr Roberts from the TaxPayers’ Alliance warned both parties to rein in their spending sprees as they are leaving taxpayers disillusioned ahead of the general election.
He told Express.co.uk: “Taxpayers are anxious about the election spending splurge from the main political parties, who have turned on the public spending taps at a time when swing voters desperately don’t want to pay even higher tax bills.
“Our landmark polling has shown that more than half of the voters actually want the basic rate of income tax cut to 15p, while over three-quarters backed a cap on council tax rises.
“Politicians would do well to reign in their promises, stop maxing out the nation’s credit card, and win the respect of typical taxpayers by finally admitting that enough is enough.”
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Labour manifesto: The Chncellor accused Jeremy Corbyn of a ‘reckless spending spree’ (Image: GETTY)
Labour manifesto: Jeremy Corbyn and Shadow Chancellor John McDonnell (Image: GETTY)
What does the Tory analysis claim?
The Tory analysis alleges there is a huge £374billion black hole in Labour’s numbers, with only £277billion of their £651billion of resource spending covered by taxes under current proposals.
The Conservatives claim Labour will have to hike taxes to make up the shortfall, including a more comprehensive form of Council Tax.
Labour has called for a new “progressive property tax” which could see the average household pay £316 more on property tax each year than under the current system. This is expected to raise £7.4billion.
Labour has proposed to scrap the Capital Gains Tax exemption on main homes that would force owners to pay income tax on the profits when they move properties, with this estimated to raise £2billion a year.
The number of seats won by each political party in the previous three general elections (Image: EXPRESS)
A “lifetime gifts tax” would mean a huge hike for most people who inherit a family home from their parents. This is expected to raise an additional £9.2 billion a year.
The analysis from the Tories claimed 1.14million people in the North East would be clobbered with annual tax increase of £1,600.08, while in the North West, 3.29million taxpayers would be smashed as a cost of £1,822.70 per year.
Some 2.44million would be hit in Yorkshire and the Humber with a yearly tax rise of £1,699.55.
In the East Midlands, 2,220,000 people would be affected to the tune of £1,852.66 annually.
For those living in the West Midlands, 2,600,000 people would be hit at a cost of £1,802.88 every year.
Labour manifesto: The Tories were accused by their rival of spreading ‘fake news’ (Image: GETTY)
In the East of England, a total of 3,060,000 taxpayers would face an annual tax increase of £2,608.24.
Taxpayers living in London would be impacted most, with 4.26million people affected by the £4,312.06 increase, with 4.7million taxpayers hit with an annual bill of £2,991.93.
The analysis shows that 2,740,000 would be hit in the South West with an annual rise of £1,941.95.
In Wales 1,380,000 people would face a rise of £1,481.02, in Scotland, 2,600,000 people would see their tax bill rocket by £1,997.73 and in Northern Ireland, 739,000 people would face a hike of £1,525.87.
