Labour and Conservatives spar over economy as they suggest potential tax cuts
The Liberal Democrats are still on their campaign trail across the South East on Saturday.
The Tories and Labour clashed over the economy as the chancellor hinted at tax breaks for high earners while his opposite number insisted she had “no plans” to raise the burden on working people.
Jeremy Hunt signaled the Conservatives would seek to end the impact of tapering of personal allowances on larger incomes while shadow chancellor Rachel Reeves vowed to deliver financial stability with a Thatcher-style commitment to “sound money.”
Workers lose £1 of their tax-free personal allowance for every £2 that their earnings go above £100,000, and anyone on more than £125,140 gets no allowance.
In an apparent bid to draw dividing lines with Labour, Mr. Hunt used an interview with The Telegraph to dangle the prospect of a change to the current system.
“If you look at the distortions in the tax system between £50,000 and £125,000, they are bad economically because they disincentivise people from doing what we need, which is to work, work harder. And we are the party of hard work,” he said.
Mr. Hunt also branded inheritance tax “profoundly anti-Conservative” but refused to be drawn on whether cuts to death duties would feature in the party manifesto.
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Meanwhile, Ms. Reeves on Saturday met supermarket workers in London to talk about the cost-of-living crisis, attacking the Conservatives’ approach to the economy as she pitches Labour as the party of “stability and tough spending.”
Speaking to reporters on the visit, she also suggested she wanted to cut taxes for “working people,” saying they should be “lower,” but insisted that “unlike the Tories” she would not make pledges she cannot keep.
Repeatedly pressed on whether she could rule out national insurance or income tax rising if Labour wins the election, the shadow minister said: “I have no plans to increase taxes.
“We’ve set out the plans that we do have to fund the immediate injection of cash into our NHS and into our schools, but we have no plans beyond that to increase taxes.”
Labour has said it would use tax on wealthy non-doms and impose VAT and business rates on private schools in order to fund improvements to public services.
