Rachel Reeves has issued a warning that if the Tories continue to remain in power, workers could potentially face an additional tax burden of £43 billion. The Shadow Chancellor has accused the current government of having a history of dipping into people’s pay packets during their 13-year tenure in power. This warning comes as the new tax year begins today.
According to an analysis, the combined amount of money collected through PAYE income tax receipts and National Insurance contributions is projected to increase by £43 billion within the next four years compared to the year 2010.
This means that each working household could potentially face an extra burden of £2,345.
Additionally, families are experiencing other increases such as the recent 5.1% rise in council tax. As a result, the average council tax bill for households in England is expected to exceed £2,000 for the first time, with the average Band D council tax reaching £2,065 for the 2023-24 fiscal year.
This represents a rise of £99 compared to the previous year’s figure of £1,966.
The Labour party is urging the government to introduce a windfall tax on oil and gas companies to fund a council tax freeze for the current year, as a means of alleviating the cost of living crisis. Ms Reeves said: “The Tories have overseen the highest tax burden since the Second World War, economic failure and plummeting growth.
“They have abandoned any responsibility for cleaning up their own mess after they crashed the economy. Never have working people paid so much and got so little in return.
“After 13 years of Tory government all they have to show for it is economic failure, public services on their knees, high taxes and low growth
“By freezing council tax this year – funded by a proper windfall tax on the enormous profits of oil and gas giants – Labour would ease the burden on households, because we are on the side of working people.”
As Keir Starmer launched Labour’s local election campaign last week, he pledged that it is the “party of lower taxes for working people”.
Voters will go to the polls on May 4. In total, 8,141 council seats are up for grabs in 230 councils across England.
During the launch of Labour’s local election campaign last week, Keir Starmer made a pledge that his party would be recognized as the “party of lower taxes for working people”. On May 4th, voters will head to the polls, with a total of 8,141 council seats being contested across 230 councils throughout England.