Labour’s tax and spend plans ‘do not add up’
LABOUR’S plan to tax and spend billions were attacked by an expert who warned yesterday the scheme “doesn’t add up”.
Paul Johnson, director of the respected Institute for Fiscal Studies think tank, said the plans contained “errors”.
He said Labour could not raise £50billion in extra tax its manifesto proposes simply from companies and the top five per cent of earners.
Mr Johnson said: “The Labour Party’s looking at spending an extra £75billion a year according to their manifesto – and that is an extremely big number indeed.
“That would be the highest tax levels in peace time in this country.”
Labour proposed to borrow £25billion for infrastructure spending but get the rest by raising taxes on companies and the rich.
Mr Johnson added: “If they were able to do that, that would take tax in the UK to its highest ever level in peace time so this would be by UK standards quite extraordinary – though not so different from where we are in many other Western European countries.
“But actually they can’t raise the £50billion they say they would raise just by taxing companies and a little bit off the rich. It absolutely doesn’t add up.”
Conservative Chief Secretary to the Treasury David Gauke said: “Jeremy Corbyn is planning the biggest tax hikes the country will have ever seen which would put jobs at risk, the economy at risk and family finances at risk.
“Corbyn is already planning to break his manifesto promise with a tax rise on married couples but the black hole at the heart of his spending plans would mean further tax rises for working families.”