Labour was yesterday accused of targeting the ‘aspirational’ middle classes as its manifesto unveiled plans for a sky-high tax on holiday homes and a huge increase in inheritance tax.
Unveiling a string of radical measures, the party’s manifesto detailed a ‘second homes tax’ that would be equivalent to twice the level of council tax.
It would be levied in addition to council tax, meaning a second home owner would effectively see a tripling in their annual bill.
Unveiling a string of radical measures, the party’s manifesto detailed a ‘second homes tax’ that would be equivalent to twice the level of council tax. It would be levied in addition to council tax, meaning a second home owner would effectively see a tripling in their annual bill
Jeremy Corbyn said Labour would cancel the cuts to inheritance tax brought in by George Osborne in 2015 – meaning couples will have to pay the levy if they want to pass on anything more than £650,000.
Meanwhile, the party’s manifesto also outlined tough new rules for landlords – including giving cities the power to cap rents, and tenants the power to set up new ‘renters’ unions’.
The Labour leader also confirmed the party would scrap the right to buy – preventing council tenants from getting a foot on the housing ladder.
On top of this, capital gains tax on the sales of second homes will soar – and income tax will go up for all earning above £80,000.
The plans were slammed by Lord Tebbit, who said the policies were an attack on aspiration.
He added: ‘The way to ensure the working classes get a leg up is to allow them to keep more of their money and to buy their house.
The only people who get better off in a Marxist society are the leaders who all get very rich.’
He also accused Labour of wanting ‘a classless society where everyone is in the lowest possible class’.
Jeremy Corbyn said Labour would cancel the cuts to inheritance tax brought in by George Osborne in 2015 – meaning couples will have to pay the levy if they want to pass on anything more than £650,000
Tory MP Michael Fabricant said the plans ‘will not inspire future generations to succeed’.
The party also pledged a crackdown on those who rent out their homes or rooms using Airbnb.
The Labour manifesto said the party in government would operate on the basis that ‘returns from wealth should not be taxed less than those from income’.
It said: ‘Currently people can earn more income from buying property than from working for a living, and they can pay lower taxes on that. This is not just economically inefficient but socially unfair.’
The manifesto claimed that the tax on second homes would raise £560million a year.
It said: ‘We will bring in a new national levy on second homes used as holiday homes to help deal with the homelessness crisis, so that those who have done well from the housing market pay a bit more to help those with no home.’
The levy charged on holiday homes will be equivalent to 200 per cent of the current council tax bill for the property.
And the document confirmed huge inheritance tax rises. While the Tories will limit inheritance tax to couples leaving their children £1million or more, Labour will take that back to £650,000 for couples.
It means children will be able to inherit less from their parents than at present. The plan will raise more than £700million for the exchequer.
Labour also said it would scrap the Tories’ married tax allowance, which means people can transfer 10 per cent of their income tax personal allowance to their partner so they can save on tax.
Mr Corbyn pledged that a Labour government would go after ‘dodgy landlords’. He said: ‘I accept the implacable opposition of the dodgy landlords because we will build a million homes, empower tenants and control rents – that’s real change.
‘If you’re a tenant, Labour is on your side.’ He added: ‘We’ll launch the biggest council house-building programme since the 1960s and cap rents.’
Labour would introduce rules to crack down on private landlords and the rent they charge. Rent rises will be capped at inflation, and local authorities will be given the power to impose further caps.
The party will make it harder for landlords to evict private renters by giving them open-ended tenancies – and there will be tougher sanctions on landlords who fail to meet minimum standards.
The manifesto said: ‘More than 11million people rent from a private landlord and many of them are at the sharp end of the housing crisis. We will take urgent action to protect private renters… Labour will stop runaway rents by capping them with inflation, and give cities powers to cap rents further.
‘We will give renters the security they need to make their rented housing a home, with new open-ended tenancies to stop unfair, “no fault” evictions. We will make sure every property is up to scratch with new minimum standards, enforced through nationwide licensing and tougher sanctions for landlords who flout the rules.’
Labour also promised ‘renters’ unions’ to ‘allow renters to organise and defend their rights’, and would ‘give councils new powers to regulate short-term lets through companies such as Airbnb’.
Kristian Niemietz, head of political economy at the Institute of Economic Affairs, said: ‘Capping rent would not add a single flat to the country’s housing stock.
‘On the contrary: this would entice the “marginal landlord” – the person for whom the decision to be a landlord is a borderline decision – to leave the market, making the housing crisis worse.’
The manifesto confirmed those earning more than £80,000 will pay more income tax. The additional rate of 45p in the pound will kick in at £80,000 instead of £150,000, and anyone earning over £125,000 will pay a ‘Super-Rich Rate’ of 50p. This will raise £5.4billion.
Capital gains tax on sales of a business, a second home, family heirlooms and shares will go up. Rates are currently 5, 10 or 20 per cent – but will increase dramatically to the same level as income tax.
Blueprint for bankruptcy: Labour party manifesto contains a litany of spending splurges… all financed by a slew of tax hikes
JACK DOYLE
Jeremy Corbyn has unveiled the Labour party’s manifesto for the 2019 General Election – and it has sparked dire warnings from his critics.
With promises to scrap tuition fees, axe the cap on benefits, and give more powers back to the unions, it reads like a Marxist’s dream.
Here, in all its blood red socialist horror, we examine the manifesto that independent analysts say would hit millions of families in the pocket…
