Where will you find cash now, Keir?

LABOUR is under pressure to say where it will raise taxes to pay for cuts – amid unions asking for the party to promise more cash for public services.

Shadow chancellor Rachel Reeves faced calls yesterday to set out whether she would fund plans to invest in public services through borrowing or tax rises.

Labour has backed the Government’s cut to National Insurance, part paid for by the non-dom tax changes, and has said it stands by its previously announced spending commitments.

But it has been accused of providing ‘no plan’ to fund spending.

Work and Pensions Secretary Mel Stride told the Commons yesterday: ‘I did invite [Ms Reeves] to explain to the House what she is going to do, given that the nondom status will be abolished, given that the windfall taxes will come forward on oil and gas. What is she going to do?

‘Is she going to, once again as she did with the £28billion, U-turn and run for the hills or is she going to raise taxes or raise borrowing? And answer came there none.’ He added: ‘No matter how much the party opposite seeks to talk down Britain, the investment flowing into our economy is a huge vote of confidence. It shows that our plan is working. By contrast, the Labour Party has no plan.’

Ms Reeves has insisted she will ‘go through every pound spent’ to find the cash and pledged that there will not be any policies in its manifesto not fully costed.

But Sharon Graham, general secretary of Unite the union, said it was ‘all very well’ for Labour to endorse the Chancellor’s tax cuts ‘but it needs to make it clear that desperately needed funding will still be provided for public services and investment’. Sir Keir Starmer twice refused to say whether he backs higher migration to grow the economy.

Labour’s policy to tax ‘carried interest’ as income rather than as capital gains would cost £900million a year, according to an official Treasury costing of the plans.

The Opposition has said it would change the rules around how the bonuses of private equity managers are taxed and use it to fund public services.

Yet despite Labour thinking it would raise £440million a year, the Treasury believes the revenue raiser would cost £900million a year by 2028/2029.

The analysis suggests Labour would face a £3.3billion black hole in total over the next Parliament as a result of the policy.