… and families on lower incomes will pay more tax

ORDINARY families will face tax increases under Labour, John McDonnell admitted yesterday.

The Shadow Chancellor said that only the top 5 per cent of earners – those on £80,000-plus – would face higher income tax and national Insurance.

but he accepted that those lower down the income scale would lose the marriage tax allowance, which is worth up to £250 a year.

Mr McDonnell told the BBC’s Andrew Marr Show: ‘What we’ve said is that there’d be no increase in income tax rates for 95 per cent of the people. or VAT or national Insurance.

‘I also said we will have a fair taxation system. And the point that you’re referring to is the marriage tax allowance.

‘We’ve opposed that from when introduced. It was in my last budget proposals that we’ll get rid of it. What they’ll lose is about £250 maximum. What they’ll get in return is free childcare.

‘If they’re on minimum wage they’ll have a £3,500, nearly, increase. If they’re working for the public sector, £1,600 pay increase on the 5 per cent we’re giving them.

‘but do you know why it was unfair it was introduced? It was introduced to say there’s a tax allowance for married couples but not people living together. Why discriminate in that way?’

÷GCHQ, britain’s listening post, is investigating russia’s alleged role in the leaking of UKUS documents that Jeremy Corbyn has used as ‘proof’ that the Conservatives want to include the NHS in future trade deals.