Q&A: What Labour and the Tories are promising on personal taxation
The Tories are on the attack over Labour’s plans to axe the marriage allowance.
Personal taxation is one of the major dividing lines between the two main parties in the General Election campaign, with the Tories on the attack over Labour’s plans to axe the marriage allowance.What is in Labour’s manifesto?
Labour pledge that 95% of people will face no tax rises. The threshold at which people start paying the 45p rate will be reduced to £80,000 from £150,000, with a new 50p rate for people earning more than £123,000. The party claims the tax rises on the top 5% of earners will raise £6.4 billion. The party also plan to raise £3.7 billion by scrapping “tax giveaways”, including the married persons’ tax allowance.What are the Tories saying about Labour’s plans?
They claim that four million people will lose out up to £230 a year from the decision to scrap the marriage allowance, which allows someone to transfer up to £1,150 of their tax-free personal allowance to a spouse. Treasury Chief Secretary David Gauke said: “Jeremy Corbyn has already broken his promise on tax. Under his plans, taxes would rise for millions of ordinary working families across the country, even before his shadow chancellor has had to pay for the black hole at the heart of their uncosted spending plans.” He said that “putting Jeremy Corbyn in Downing Street would mean the highest taxes this country has ever faced in peacetime”.What are the Tories proposing?
The personal tax allowance to be increased to £12,500 while higher tax rate threshold increased to £50,000 by 2020. The party has not repeated David Cameron’s “triple tax lock”, ruling out rises in income tax, VAT and National Insurance. Instead, the Tories have promised not to increase VAT and keep taxes low. Defence Secretary Sir Michael Fallon has indicated there would be no rise in income tax for higher earners, but Theresa May has insisted “It is our firm intention to reduce taxes for ordinary working families”.What have Labour said about the Tory plans?
Jeremy Corbyn said: “While Michael Fallon claims there will be no tax rises, Theresa May refuses to rule them out. You can’t trust a word the Tories say. Labour is the low tax party for the many, while the Conservatives are the low tax party for the few.”