Labour is set to accuse the Conservatives of promising £17 billion of tax cuts for the wealthy ahead of the Budget next week. The party is expected to claim Kemi Badenoch has chosen to prioritise those with the broadest shoulders rather than helping those struggling with the cost of living.
Tory Tax Plans Under Fire
With John Healey delivering the Budget on Wednesday, Labour will point to Tory plans to scrap the council tax surcharge on houses worth over £2 million, cut inheritance tax on properties worth over £1 million, and remove VAT from private school fees. The party says middle-income Brits would not gain a single penny from these measures.
In his first Budget as Chancellor, Mr Healey is expected to present immediate measures on Wednesday to give breathing space to British families and businesses, while promising long-term changes to bring costs down for good.
Dividing Line in the Budget
Labour is expected to make this a clear dividing line through the Budget, claiming they are helping those in need while the Tories promise billions of tax cuts for the wealthiest. The Chancellor will use the Budget to lay out how the Government plans to account for commitments made since Mr Burnham came to power, aimed at helping people and businesses with increased costs of living and trading.
These include the promise to cut VAT on energy bills this winter and to slash business rates for pubs, clubs and live music venues. Mr Healey and the Prime Minister have both spoken about wanting to give the public and businesses "breathing space" at the Budget, hinting that further financial help could be doled out.
Conservative Response
The Conservatives were also accused of failing to learn the lessons of the disastrous Liz Truss premiership. The 2022 mini-Budget was co-authored by current Shadow Chancellor Andrew Griffith, and Resolution Foundation analysis of Tory tax cuts found it would "overwhelmingly benefit those on the highest incomes in the South of England". Despite this and a flurry of cuts already promised, Mr Griffith has already suggested the Conservatives would make further cuts in "every part of government".
A Labour source said: "Kemi Badenoch's £17 billion bung for the very richest shows the Tories haven't changed. They wrecked the economy and hammered family finances and they'd do it all over again."
Responding, a Conservative spokesman said: "This is total nonsense. Labour are trying to distract from the fact they have hiked taxes by £66 billion. The Conservatives would help every family across the country with the cost of living by cutting energy bills by £200 through our cheap power plan. We will scrap stamp duty to help families get on the housing ladder. We will scrap business rates for the vast majority of high street businesses, and we will halve employer National Insurance for 21-24 year olds to help them back into work."
