‘Race to the bottom’ on tax to woo ‘right’ votes
THE Tory leadership contest will lead to a “race to the bottom” on tax and spending as rivals jostle to win over right-wing party members, John McDonnell has warned.
The Shadow Chancellor warned that the Tories’ EU election mauling by the Brexit Party would lead to a further lurch to the right.
Hardliner Dominic Raab has promised a 5p tax cut, which Labour says could cost £25billion a year – more than the extra money the Tories have promised the NHS.
“This could only be raised by cuts to services or extra borrowing. After nine years of austerity, most of our public services are on their knees,” Mr McDonnell said.
He called Boris Johnson “politically promiscuous” and said he was likely to follow suit on tax cuts.
Health Secretary Matt HARDLINER Hancock had Dominic Raab been one of the architects of austerity while Foreign Secretary Jeremy Hunt’s switch against No Deal was simply to “try to distinguish himself” from others in the crowded field.
Mr McDonnell told the Mirror: “We’re facing the worst of all possible worlds, with Tory leadership candidates vying to cut income tax and at the same time having a cuts auction on our public services.”
The Labour MP suggested the Tory rivals would spend the next two months arguing about issues that were “totally out of touch with the reality” of most people’s lives.
He said: “Every candidate will want to pander to the right in party associations.”
Chancellor Philip Hammond has warned that any tax cuts would be “very dangerous” if funded by borrowing.