John McDonnell unveils Labour tax plans

John McDonnell has unveiled Labour's tax plans this morning. According to the party, 95% of people will pay no adittional tax under a Labour government. On Marr, the Shadow Chancellor said that those earning over £80,000 will be "asked to pay a modest bit more" to pay for aditional spending on healthcare, social care and education. 

He said that the specifics will be set out in the manifesto - expected to be published early this week - but he repeats: it will be "a modest bit more".

The Shadow Chancellor said he wants to reassure low and middle earners that they won't see their taxes rise. 

He added that the party's plans include "no stealth taxes either". When asked about possible rises to employers' national insurance, he insisted "that isn't happening."

There are also "no plans" to raise VAT, apart from the plans to add it to private school fees to fund free school meals for all. 

The Shadow Chancellor won't be drawn on the possibility of a "wealth tax" for the super rich saying "we're not talking about hitting people hard, we're talking about modest increases".

The Lib Dems released their tax plans yesterday, which would see wealthier retired people lose their annual winter fuel payment under proposals to protect the "triple lock" on state pensions. This would see those on incomes in the 40% tax bracket lose the currently universal allowance - worth up to £300.

The Lib Dems also said that an extra £772 a year would be paid in pensions by 2021. Labour has also pledged to retain the guarantee which sees the state pension rise in line with wages, inflation or by 2.5% - whichever is highest. The Tories appear to have scrapped the triple lock. 

Tim Farron's party has also pledged to raise all tax on all income tax brackets by one penny in the pound to pay to pay for the NHS and social care. The party said that  a penny-in-the-pound rise on all income tax bands and on dividends would raise around £6bn a year. The Tories said 30 million people would be hit by the tax rises.

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