The coalition government is choosing to make working families pay more while millionaires pay less. The government is cutting taxes for anyone earning £1 million a year by over £2,000 per week. All David Cameron has to offer is more of the same: tax cuts for the richest at the top, a squeeze on the middle and a race to the bottom.
The economy has flat-lined for the last two years and the deficit is going up not down. David Cameron and George Osborne’s out-dated, trickle-down economics, with tax cuts for the very rich, isn’t working.
Families are facing a crisis in living standards, and the UK economy will only prosper when the vast majority of the people of this country prosper too. That’s why a One Nation Labour government led by Ed Miliband will put a fairer tax system at the heart of its new priorities.
So that’s why Labour has announced that a 10p starting rate of tax should be brought back. It would put right a mistake made six years ago by Gordon Brown when he was Prime Minister. At a time when the economy is flat-lining and the cost of living is rising it would put money back into people’s pockets. And it would make work pay by ensuring people keep more of their income if they increase their hours.
We would pay for the introduction of a 10p rate by taxing houses worth over £2 million. The measure would mean a tax cut for 25 million people across the UK.
We’ve always said that our tax and spending commitments for the next Parliament will have to wait until we publish our manifesto in 2015 but with families feeling the squeeze, people rightly want to know more about what Labour would do to help them in these tough times. They want to know what our alternative is to the Tory vision of a race to the bottom in wages and skills, rewarding those at the very top, including giving 13,000 millionaires an average tax cut of £100,000, but leaving everyone else squeezed as never before.
And we also believe there should be help for businesses and for consumers. That’s why we are calling on the government to cut VAT to put more money into people’s pockets to boost the economy.
Meanwhile, we would like to see a National Insurance Holiday for small businesses who take on a new members of staff. These are practical measures which this government could take and if we were in government we would take.
The people of this country need action from the government to boost jobs and growth. These measures would help do just that.