The Labour Party will raise an extra £19.4bn from corporation tax, an extra £6.5bn from an intensified tax avoidance programme, and re-introduce the 50p income tax rate, according to its manifesto launched today.
The first major party to release its pre-election promises, Labour also said it will re-nationalise rail, water and the Royal Mail, and scrap tuition fees, in what has been described as its most radical manifesto since the 1970s and 80s.
The 50p income tax rate will be introduced at a threshold of £123,000, while those earning more than £80,000 will be subject to a 45p rate, raising an additional £6.4bn from high earners.
Meanwhile, corporation tax will be increased by more than a third to 26% by 2022, raising an extra £19.4bn for the coffers.
Labour leader Jeremy Corbyn (pictured) said these tax increases would only affect the top 5% of earners, chiming with the party's campaign slogan "for the many, not the few". He also promised to retain the state pension triple lock, and to not increase VAT or national insurance.
Labour produced a document alongside its manifesto, setting out how it will raise £48bn in extra taxes to pay for pledges to spend more on policing, the NHS and schools.
With regards to the nationalisation projects, however, Labour said this fell under capital spending and so was not costed in the manifesto. The money would be borrowed instead, although Labour maintained it would not add on to the government's existing deficit.
Critics are not convinced
Institute for Fiscal Studies director Paul Johnson told BBC News: "The tax increases…would take the tax burden to the highest it has been in 70 years. There's an awful lot of uncertainty about whether you can raise that tax. The actual amount you can get goes into tens of billions but probably not the £50bn Labour is claiming.
"The main point is that this is a very significant change in the size of the state. There's a very obvious choice here for voters."
Ex-Lib Dem pensions minister, now Royal London policy director, Steve Webb added: "With rising life expectancy, state pension ages are rising around the developed world. It would be burying our head in the sand as a nation to think that we can somehow insulate ourselves from these trends.
"Keeping pension ages down simply means a bigger tax bill for the working age population. A £300bn price tag for this policy would leave future generations paying the bill for decades to come."
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