Taxpayers would have to fork out an extra £2,400 every year to pay for Jeremy Corbyn’s “reckless spending spree”, the Tories have warned, but the Labour Party accused them of “fake news”.
Chancellor Sajid Javid defended the Conservatives’ claim that Mr Corbyn’s policies would cost £1.2 trillion, and said the Labour leader would open up a “huge black hole” in the nation’s finances.
The Conservatives said analysis of Labour’s spending plans shows that only £277 billion of the party’s £651 billion of resource spending is covered by taxes under current plans, suggesting Labour would have to put up taxes to cover the shortfall.
Mr Javid said: “Jeremy Corbyn is planning a reckless spending spree which we will all have to pay for. He will open up a huge black hole in the nation’s finances and hardworking people will be the ones that suffer.
“In order to pay for his policies, he will not only have to massively increase borrowing and debt, he will also need to hike up taxes by £2,400 per person – this is equivalent to an entire month’s pay for the average earner.
“The British people have made huge progress over the last decade in repairing the damage left to us by the last Labour government. If Jeremy Corbyn gets into power he would throw all that hard work away.
“A vote for Corbyn’s Labour is a vote for higher taxes and the chaos of two more referendums.
“Only a sensible, majority Conservative government will get Brexit done and provide the economic certainty that families and businesses need to plan for the future. We simply cannot afford the cost of Corbyn.”
The Conservatives should spend more time looking at their own policies as they failed to produce costings at the last election and have no idea about the cost of their own policiesShadow Treasury minister Jonathan Reynolds
Shadow Treasury minister Jonathan Reynolds said: “This is more fake news from Conservative HQ after Sajid Javid had his plan to use the civil service for party political ends scuppered.
“Labour will set out our plans and our costings fully when we release our manifesto.
“The Conservatives should spend more time looking at their own policies as they failed to produce costings at the last election and, as Kwasi Kwarteng demonstrated, have no idea about the cost of their own policies.”
At the weekend, the Chancellor said the opposition would spend an extra £650 million a day if it won the General Election, labelling the levels of spending “eye-watering”.
But Labour condemned the analysis as a “ludicrous piece of Tory fake news” and an “incompetent mish-mash of debunked estimates and bad maths”.
Mr Javid said the proposals – which include plans to renationalise rail, mail, water and energy – were “absolutely reckless” and equivalent to funding the entire NHS budget for nine years.
The analysis, overseen by Mr Javid, and published in a 35-page dossier, is based on costings for Labour’s last manifesto and its most recent pledges, spread across a five-year period.
It assumes the Opposition would immediately sign up to a 32-hour week, abolish private schools and pilot a universal basic income.