NO-ONE earning less than £80,000 would pay more income tax under a Labour government, shadow chancellor John McDonnell pledged yesterday.
Only the top 5 per cent of earners would face “modest” rises in taxes over the next parliament to help pay for investment in public services, he said.
This means 95 per cent of workers would be protected from increases under a “personal tax guarantee,” he said.
There would also be “no stealth taxes,” Mr McDonnell continued in a nod towards the recent U-turn by Tory Chancellor Philip Hammond on increasing national insurance contributions for the self-employed.
Prime Minister Theresa May is suspected of preparing to ditch predecessor David Cameron’s 2015 pledge not to raise rates of income tax, national insurance or VAT until 2020.
Mr Hammond said last month he would like “more flexibility” over his power to raise taxes.
Labour pledged not to increase national insurance or basic VAT until at least the next election in 2022.
Mr McDonnell said the details of the policy would be outlined in the party’s manifesto, which is expected to be launched next week.