New economic analysis suggests that, if elected, the Labour party tax policies could cost the UK over 300,000 jobs and more than £25 billion in GDP.
In The Cost of Labour, published on Monday 22 September by the Centre for Policy Studies, Head of Economic Research, Adam Memon, estimates the potential cost to the UK economy of Labour’s tax policy proposals. The report calculates that, if elected in the upcoming general election, Labour’s announced policies could result in 306,500 fewer jobs over the following four years.
The report derives this economic impact from the following ten major tax policies promised by the Labour party:
- Increasing the Corporation Tax rate from 20 percent to 21 percent.
- Increasing the top rate of Income Tax from 45 percent to 50 percent.
- Reintroducing a 50 percent payroll tax on bank bonuses.
- Increasing the levy on bank balance sheets.
- Introducing a tax on houses worth above £2 million.
- Imposing a levy on the profits of payday lenders.
- Reintroducing Stamp Duty Reserve Tax.
- Introducing a Financial Transactions Tax.
- Introducing a new 10 percent Income Tax rate.
- Cutting and freezing Business Rates.
Memon concludes, “Whilst there may be reasons to increase taxes, perhaps to improve the fiscal balance or for redistributive purposes, the consequences
