Labour’s tax hike for rich

LABOUR is plotting to raise income tax on high earners, as well as taxes on private healthcare, for a multi-billion-pound boost to the NHS.

John McDonnell said anyone earning more than £80,000 would see their income tax rise to 45p in the pound.

Anyone earning more than £123,000 a year would pay 50p in the pound – a rise of ten percentage points.

Labour is also planning to increase the insurance premium tax on private healthcare to 20 per cent, which would bring it in line with the VAT rate.

Mr McDonnell claimed the hikes would raise £4.7billion a year. Critics argue that higher income taxes can cut revenue as they deter people from working harder and encourage tax avoidance.