How much money is left in voters’ pockets each month is one of the deciding factors in any general election. And the 2017 election is no exception, with the Labour, Tory and Lib Dem manifestos all promising to do wildly different things with the taxes they collect.
The Lib Dems want a tax rise to fund the NHS, the Tories want to slash corporation tax and Labour want a hike for top earners on £80,000 a year or more.
Here, we’ve analysed the main tax pledges in the three party manifestos published so far to let you know what they are planning to do with your money.
- Income tax will rise 1p in every pound to fund the NHS
- The deficit on day-to-day spending will be eliminated by 2020
- Alcohol will have minimum prices by law
- Corporation tax will rise slightly, back to 20% from the current 19%
- Tory Capital Gains Tax and Inheritance Tax cuts will be reversed
- Business rates will be reviewed and reformed
- A full review will be launched into how taxes are spread across generations – i.e. whether the old and young are paying a fair share
- A new ‘start-up allowance’ will give new firms £100 a we
- Tory election plans to cap public sector pay risk major recruitment crisis, warns Institute for Fiscal Studies
- The deficit will be wiped out by “the middle of the next decade” – a full 10 years later than George Osborne promised
- National Living Wage for over 25s will be raised ‘in line with median incomes’ to 2022
- Tax-free personal allowance will rise to £12,500 by 2020, fulfilling a David Cameron pledge
- 40p tax threshold will rise to £50,000 by 2020, also fulfilling a Cameron pledge
- Corporation tax will fall to 17%, one of the lowest rates anywhere in the OECD, as per Tory plan
- VAT will not be increased
- But National Insurance could rise, it just isn’t spelt out in their manifesto
- Long-term reforms will be made to business rates
- Tax ‘advisory firms’ that aid avoidance will face tougher regulation, but the exact form is not spelt out
- Corporation tax will be hiked to 26% for the biggest firms to help fund Labour’s massive investment programme
- A new levy on companies “with high numbers of staff on very high pay” and a VAT hike for private health firms
- Income tax will be raised – by an as-yet undisclosed-amount- for anyone earning £80,000-a-year or more
- But for 95% of workers there will be no tax increases at all
- Small businesses will be offered a wealth of support including loans from new regional development banks and new laws hitting those new laws on firms which make late payments
- And key businesses deemed “systemically important” to the nation will be protected in law from hostile takeovers.