MILLIONS of families would be hit by 12 crippling tax rises if Labour seized power, the Chancellor warned last night.
Sajid Javid claimed working people would have to pay £2,400 each to fill a £385billion black hole in Jeremy Corbyn’s spending plans.
He said the 12 hidden tax horrors spelt out in a Tory dossier cast serious doubt over Labour’s claim that only the top five per cent of earners would pay more.
In a speech in the marginal battlefield town of Bolton, Mr Javid dubbed the £1.2trillion Socialist plan “primary school politics, not grown-up government”.
He added: “Unless they find that magic money tree in the next couple of weeks, they’re going to bring in the biggest tax hike of modern times.”
The Tory dossier identifies Labour’s six new tax rises on low and middle-income families hidden away in its manifesto as:
- MARRIAGE TAX: From stripping couples on under £50,000 a year of their £250-a-year marriage allowance.
- STEALTH TAX ON DRIVERS: The cost of petrol will be ratcheted up by 16p a litre to offset the £11billion windfall tax imposed on oil companies’ profits.
- HEATING STEALTH TAX: Energy bills for 24 million households using gas will also go up because of the windfall tax.
- HIGHER INHERITANCE TAX: Reversing a cut that pushed the tax-free threshold per person up to £500,000.
- PENSION TAX: The pension pots of ten million savers could be slashed by £11,000 because of a financial transactions tax on City companies.
- SMALL BUSINESS TAX: A new levy on one million businesses with profits under £300,000 a year that will add £5,000 to their tax bills.
Mr Javid’s dossier also says Labour would have to raise six more taxes to fill the black hole.
All are based on statements by Shadow Cabinet members or Labour policy documents. They are:
- INCOME TAX: By ending the tax-free personal allowance.
- HOMES TAX: By replacing council tax with a progressive property tax.
- MOVERS TAX: From scrapping capital gains tax exemption on the sale of the main home.
- GIFTS TAX: Replaces inheritance tax but has a far lower tax-free threshold.
- FUEL DUTY: Pushed up to meet green targets by cutting car journeys.
- HOLIDAY TAX: Penalising those who fly, to cut the number of air journeys.
The Chancellor added: “They may reject one of these — and if they do they need to be honest — what other tax would they raise instead?”
He told the audience: “Imagine the nightmare on Downing Street on Friday 13th.
‘WHO WILL PAY THE PRICE?’
“The Pound crashing in the early hours of the morning as Corbyn inches toward a majority, foreign investors rushing their money out of the country in fear of exchange controls, a dramatic downgrade of government debt credit ratings and the cost of our debt spiralling out of control as confidence in the British Government collapses.
“It’ll happen in days and weeks. And who will pay the price for this? You. Ordinary workers. Families up and down the country.”
The Tories’ dossier could have come up with an even bigger black hole, Mr Javid argued.
But he claimed to be giving Labour the benefit of the doubt by not including 59 other costly policies in their sums because there was not enough detail about them.
Mr Javid also attacked Mr Corbyn’s pledge last week to raise an extra £83billion for his hard-left projects including his nationalisation programme.
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He added: “As Chancellor, I can tell you, you can’t simply raise that amount of money from such a small group of people.”
Labour reacted with fury to the Tories’ dossier, with Shadow Chancellor John McDonnell branding it “a pathetic and vacuous package of smears, errors and double-counting”.