What Corbyn’s Labour is proposing as Tory lead narrows
LONDON: With less than two weeks to go to the UK general election, polls indicate the opposition Labour Party is creeping up on the Conservatives. While Prime Minister Theresa May is still the clear favourite, an upset would bring to power a government that wants to nationalise industries and rewrite decades of foreign policy.
TAXES
JeremyCorbyn’smanifestopledgesanincome tax increase for the top 5% of earners — those with an income of more than £80,000 — and tax on private health insurance as part of a plan to inject a further £6 billion a year into the National Health Service. Corporations would also pay “a little more”: 26% by 2020, up from 19% now.
Raising the top rate of income tax risks “diminishing the UK’s appeal”, according to Nina Skero, at the Centre for Economics and Business Research. Increasing corporation tax is a popular measure with the public amid anger at corporate tax avoidance. The Institute for Fiscal Studies said neither of the main parties were being honest about how much tax rates would have to rise, and said there is “no way” Labour spending pledges could all be paid for by top earners.
BREXIT
Mr Corbyn has found it difficult to formulate a Brexit strategy knowing his party is more divided than the Tories over the merits of leaving the EU. Labour’s manifesto “accepts” the result of the referendum and Mr Corbyn says as the matter is “settled”, there won’t be another vote.
The party promises to scrap Ms May’s negotiating strategy and prioritise membership of the single market and customs union in the talks with the EU.
That would be hard to achieve given the party has also said it would end free movement of labour, which EU officials say the UK must keep it if wants to maintain market access.
Labour has also rejected Ms May’s view that “no deal is better than a bad deal” by saying no pact would be the “worst possible” option and that a Labour government would negotiate a transitional accord. Again the EU would have to agree to that, although Mr Corbyn’s proposal to immediately guarantee existing rights for EU citizens living in Britain would generate goodwill.
PUBLIC SPENDING
Labour pledges to scrap university tuition fees, which have been controversial since they were introduced in 1998. Mr Corbyn pledges “the biggest council building programme for at least 30 years” while introducing controls on rent rises to “end insecurity for private renters”. At the same time they will eliminate the budget deficit within five years.
A pledge to get rid of tuition fees was a winning gambit for the Liberal Democrats in 2010, but their failure to deliver once they got into government may make voters more sceptical this time around. It is also expensive; the IFS estimates bringing back maintenance grants and abolishing tuition fees would increase the deficit by about £8 billion a year.
Labour also wants to renationalise Royal Mail and bring railways back into state ownership as the private franchises expire.
IMMIGRATION
Unlike the Conservatives, who have repeated their pledge to cut immigration to the “tens of thousands” throughout the campaign, Mr Corbyn hasn’t set a numerical target. Instead, his manifesto promises “fair rules and reasonable management of migration”. The manifesto also pledges a “crackdown” on companies using migrant workers to suppress wages.
TERRORISM
Mr Corbyn, a longtime peace activist who opposed British involvement in wars in Iraq, Afghanistan and Libya, has drawn a link between foreign wars and attacks on British soil. “The blame is with the terrorists but we must be honest about the causes,” he says.
Labour will reallocate existing money rather than promising extra funding to fight terror, putting more resources towards antiradicalisation programmes and community policing.
DEFENCE
The Labour leader has promised to carry out a strategic defence review, replace Trident nuclear missiles and maintain spending on the armed forces above the Nato benchmark of 2% of GDP. Nothing is straightforward on defence for Labour. While the party supports the renewal of Britain’s nuclear weapons, Mr Corbyn and his inner circle don’t.