The 17 tax rises Labour won’t rule out – and everything its manifesto ignores

Laura Trott, the Chief Secretary to the Treasury, says that Sir Keir is preparing to announce hikes to capital gains, stamp duty and council tax
Laura Trott, the Chief Secretary to the Treasury, says that Sir Keir is preparing to announce hikes to capital gains, stamp duty and council tax - Shutterstock/Andy Rain

Labour is “secretly” planning to put up 17 taxes, the Tories have claimed, as Sir Keir Starmer faces questions over what is missing from his manifesto.

Laura Trott, the Chief Secretary to the Treasury, accused Labour of planning tax raids on homeowners, businesses and consumers.

At an emergency press conference she said that Sir Keir is preparing to announce hikes to capital gains, stamp duty and council tax after the election.

Ms Trott said: “In relation to each of these tax rises, Labour’s manifesto deliberately makes no commitment not to raise them.

If he wins, it’s obvious that what Keir Starmer wants to do is cynically claim the books he inherited are much worse than he thought as justification for imposing tax rises that he hasn’t told you about.”

Labour has repeatedly insisted it has no such plans but has only categorically ruled out increases to income tax, National Insurance and VAT. On Friday, the party also ruled out charging capital gains tax on the sale of family homes.

Darren Jones, the shadow chief secretary to the Treasury, said the Conservatives were “spending their time talking about things they have imagined”.

None of the 17 potential tax rises highlighted by the party are in the Labour manifesto.

Pensions – four potential tax rises

Labour has refused to match the Tories’ pledge of a “triple lock plus” meaning that, from 2027, retirees face paying income tax on the state pension for the first time.

The Conservatives have pointed out that Sir Keir has also failed to rule out axing rules that allow people to take the first 25 per cent of their pension pot out as a tax-free lump sum.

On top of that, they have accused him of eyeing up a raid on pension contributions, either by slashing tax relief or applying National Insurance to employer contributions.

Family homes – four potential tax rises

The Tories have suggested Labour may raise cash by hiking council tax. This could be done by increasing the number of bands to charge more valuable houses more.

Alternatively, Sir Keir could cut council tax discounts, such as for single occupancy, or take the more nuclear option of ordering a nationwide council tax revaluation.

Another tax the Labour leader has failed to rule out is an increase in the rate of stamp duty.

Energy bills – one potential tax rise

In their manifesto, the Conservatives ruled out introducing any new green levies on consumers and said the cost of those in place would be reduced.

They say Labour has failed to match that commitment, raising the possibility it could raise cash by introducing extra taxes on businesses or energy bills.

Businesses and jobs – seven potential tax rises

The Tories claim that, having ruled out increasing the burden on working people, Sir Keir is eyeing up a raft of potential tax rises on businesses instead.

They say he has failed to rule out increasing Capital Gains Tax on assets sold by firms or the rate of National Insurance contributions for employers.

The party has also suggested Labour may axe a series of investment reliefs for companies, plus inheritance tax reliefs for farmers and small-business owners.

Cars – one potential tax rise

The Conservative manifesto commits to reversing Sadiq Khan’s expansion of Ulez and to banning councils from rolling out “pay-per-mile” road pricing.

They have accused Labour of planning to roll out such schemes across the country, even though Sir Keir did criticise last year’s Ulez expansion.

What the Labour manifesto leaves out

The Tory attack on taxes came as questions were raised over Labour’s manifesto, which omitted details of the party’s plans in other key policy areas.

Legal migration

Sir Keir has promised to reduce net migration from its current record high of more than 700,000 but has refused to say by how much he would bring it down.

He has also set out plans to reform the points-based immigration system, but has failed to give much detail beyond enforcing “appropriate restrictions” on visas.

Meanwhile, plans to develop skills strategies for domestic workers, to reduce dependence on foreign labour, are only mentioned for health and social care and construction.

Small boats

On illegal migration, Labour has repeatedly pledged to scrap the Rwanda plan without saying what it would do with the migrants set to be deported under it.

Its plan is to divert the money being used for that scheme to pay for a new border security command instead, which it says would “smash” the smuggling gangs.

But beyond pouring more resources into the UK side of enforcement the party has given little detail of how it would do things differently to the current Government.

In particular, it has pledged not to leave the European Convention on Human Rights, which has repeatedly impacted on Tory plans to deport illegal migrants.

Farming

The manifesto only features 87 words on agriculture and almost no detail on how Labour would help Britain’s farmers through financial hardship.

It does not spell out what the party would do on subsidies except to say that it would make the current system “work for farmers and nature”.

The dossier also says Labour will “work with farmers and scientists” to eradicate Bovine TB and “end the ineffective badger cull” but it does not set out how.

Education

The manifesto does not mention what Labour’s position is on tuition fees, failing to commit to not raising them as universities face a funding crisis.

It also does not include any measures to cut the level of student loan repayments, something that the party had previously committed to look at.

On private schools, it does not spell out when the introduction of VAT on fees would be introduced, despite Sir Keir saying it would happen “straight away”.

Benefits

Sir Keir’s plans for welfare reform are equally vague after he was forced to drop his initial Labour leadership pledge to abolish Universal Credit altogether.

The manifesto only pledges to review how the system is working and to “reform employment support” by making changes to how job centres work.

It also commits to “reform or replace” the Work Capability Assessment, which determines entitlement to sickness benefits, but does not say how.

Defence

On defence, Sir Keir has promised to boost spending to 2.5 per cent of GDP but it is unclear when he would do that by, having refused to match the Tories’ 2030 target.

Brexit

On Brexit, the party has said it will not re-enter the single market but does want separate deals on food exports and professional qualifications.

But the Labour leader has suggested his ambitions go far beyond what is in the manifesto, arguing that “everything is going to have to be negotiated” with the EU.

The manifesto also leaves open a number of questions on Brexit given that it makes a commitment to “tear down unnecessary barriers to trade” with Europe.

Labour has repeatedly said that it will not take Britain back into the single market but does want separate deals on food exports and professional qualifications.