The Tories have started this election campaign as they mean to go on: by telling lies about Labour’s tax plans. David Cameron’s claims about Labour are totally made up figures from a Prime Minister who has raised taxes on working people.
Under the Tories families have lost over £1,100 a year on average from tax and benefit changes, while millionaires have been given a huge tax cut.
Labour will reverse the Tory tax cut for millionaires and cut taxes for millions on middle and low incomes through a lower 10p starting rate of income tax.
And because we have a balanced approach to the deficit and no unfunded commitments, we will not raise VAT, national insurance or the basic and higher rates of income tax.
In contrast the Tories’ extreme spending plans and £10 billion of unfunded commitments mean they will end up raising VAT again and cutting our NHS. David Cameron broke his promise on VAT last time and if he gets the chance he’ll do the same again.
- Labour has a balanced plan to cut the deficit every year and get the current budget into surplus and national debt falling as soon as possible in the next Parliament. How fast we do this will depend on the state of the economy and our plan to raise living standards. That will require tough choices, and departmental budgets outside protected areas like health and education will fall. We will also make fairer choices on tax at the top, and deliver rising living standards so we can boost tax revenues and stop subsidising low pay. And we will not make promises we cannot keep and cannot afford: we will have no unfunded spending commitments in our manifesto.
- The truth is that it is the Tories who are borrowing more: £200 billion more than they planned, because their failing plan gave Britain the slowest recovery in 100 years and falling living standards.