Starmer’s dilemma as Tories pinch his plans for raising cash

LABOUR’S economic plans were thrown into turmoil last night after their two main revenue-raising ideas were plundered by the Chancellor.

The party was unable to say how it would fund its spending commitments after Jeremy Hunt scrapped the ‘non- dom’ tax status and extended the windfall tax on oil and gas companies.

Labour could not rule out tax rises to fund the measures, but pledged to set out its plan ‘in due course’.

In a political trap for Sir Keir Starmer, Mr Hunt cut national insurance by 2p – in part paid for by the non-dom changes.

Labour said it stood by its spending commitments to use the money raised on the NHS and primary school breakfast clubs, but admitted it may have to ‘ adapt’ its plans.

A party spokesman said: ‘We stand by the commitments we have made on the NHS, for additional appointments, and for every primary school to have a breakfast club.’

He added: ‘This is a humiliating U-turn... both Jeremy Hunt and Rishi Sunak have been repeatedly on the record opposing the reverse on non-doms, and if the Government had introduced those changes two years

‘This could mean tax increases’

ago, when we first called for them, billions of pounds more would have been available for our public services, including the NHS.

‘We will look at the Government’s spending plans, we will adapt our funding plans accordingly, but let me be equally clear: everything in our manifesto will be fully funded, fully costed and we will set that out in due course.’

Labour also accused the Government of having ‘burned the house down’ on public finances – but said there were no ‘specific measures’ in the Budget that the party would oppose.

‘We are under no illusions about how bad the inheritance will be if we are to win the next election,’ the spokesman added.

‘They have literally burned the house down when it comes to both the public finances and public services.

‘The only long-term way of getting more money into our public services is by having a serious plan for growth.’

But Chief Secretary to the Treasury Laura Trott said: ‘Sir Keir Starmer was unable to say what he’d do differently instead he’s sniping from the sidelines. Labour must tell the country which taxes they are going to raise to pay for their unfunded policies. Labour have accepted our tax plans which means they have a new, huge black hole in their spending promises.’