What Labour’s proposals mean for you and your cash

Keen to move past Brexit (Labour’s manifesto mentions the word just 21 times; it has 49 appearances in the Lib Dems’), Jeremy Corbyn outlined a host of bold proposals unrelated to EU membership. Here’s a whistle-stop tour of how Labour’s plans will affect your finances.

TAX

Those who earn more than £80,000 a year would be forced to pay additionalrate tax, currently 45pc, on their income. This currently only applies to those on salaries of £150,000 or more.

A new “super-rich” rate of 50pc would be introduced for people who earn more than £125,000 a year.

Capital gains tax would be brought in line with income tax and its exemption cut from £12,000 to £1,000 a year. A financial transactions tax would be paid by banks and fund managers but is likely to be passed down to investors through fees.

With inheritance tax, Labour would remove the family home allowance, which will permit someone to pass on £175,000 of property tax free to direct descendants – £350,000 for a married couple or civil partners. This would cost some families £140,000.

Labour has followed the Lib Dems in pledging to end the marriage tax

Labour’s manifesto vows to freeze the state pension age at lower than the Tories’ planned 67 allowance. This offers a £250-a-year boost to couples if one spouse is a low or non-earner and the other pays the basic rate of tax.

HOUSEHOLD BILLS

One of the most eye-catching pledges is the much-discussed free broadband. The provider would be called British Broadband and the service would be paid for via a tax on multinational tech firms.

Mr Corbyn also announced plans to bring a number of utilities back under state control. “We will bring rail, mail, water and energy into public ownership to end the great privatisation rip-off,” he said.

Labour would upgrade 27 million

The cost if Labour removes the family home allowance for

inheritance tax

Jeremy Corbyn, the Labour leader, has steered clear of Brexit when outlining his party’s plans for our finances

homes to the highest energy efficiency standards, it pledged, saving the average household £417 a year by 2030. The existing Clean Growth Strategy requires landlords to upgrade their rented homes to a minimum “C” rating by 2030. The Labour plan goes further by guaranteeing that all homes would be upgraded to the top level, currently an “A” rating.

PENSIONS

The party has criticised Tory plans to increase the state pension age to 67 and promised to stop the increases at 66. The “triple lock”, which ensures that payments rise in line with the highest of wage growth, price increases or 2.5pc, would be retained. “Betrayed” women born in the Fifties whose state pensions have been delayed would be in line for some form of compensation. Auto-enrolment, which has created 10 million new pension savers since 2012, would be tweaked to provide the lower-paid and self-employed with a workplace pension by default. The manifesto also promises to “stop people being enrolled into rip-off schemes”. The party would also create a single, publicly run “dashboard” to allow people to view all of their retirement pots in one place and legislate to allow Royal Mail to create a “collective defined contribution” scheme, a halfway house between final salary and modern pensions.

The number of hours’ free care each week for children aged from two to four

CARE FOR THE ELDERLY

“Personal care” – such as help to get dressed or get in and out of bed – will be free at the point of use for over-65s under a new National Care Service, to work closely with the NHS. Labour said it would aim to extend the scheme to all working-age adults. It would also introduce a lifetime cap of £100,000 on care costs.

High-earners are in the firing line to help fund pensions, childcare – and free broadband

CHILDREN

All children aged from two to four would receive 30 hours of free care a week. Labour also plans to extend childcare provisions to one-year-olds and has said it would scrap the child benefit cap and the two-child limit.

It would extend paid maternity leave from nine to 12 months, double paternity leave from two to four weeks and increase statutory paternity pay.

EDUCATION

Labour promised to end tax perks enjoyed by private schools, pushing up fees. But students’ tuition fees would be scrapped and maintenance grants revived.