LABOUR could have to introduce even MORE taxes than they listed in their manifesto to pay for their extravagant spending plans, experts warned today.
The IFS claimed there were a host of hidden taxes in the leftie boss’ plans – as well as policies set to hit lower paid workers and not just the rich.
In a brutal take-down of Jeremy Corbyn’s far left manifesto, IFS director Paul Johnson warned Labour’s plans for tax and spending didn’t offer a “properly credible prospectus.”
And he said that under Labour “both taxes and spending would rise to peacetime highs”.
“Both taxes and national debt [would] rise by around 3 per cent of national income,” he said this morning.
“It is highly likely that Labour, at least over the longer-term, would need to implement other tax raising measures in order to raise the 80 billion of tax revenue that they want and even just sticking to those proposals they would clearly increase taxes for many millions outside the top five per cent.”
And he added: “Achange in the scale and scope of the state that they propose would require more broad based tax increases at some point.”
Mr Johnson also described the 58billion bung for Waspi women’s pensions as “extraordinary”.
The financial expert also accused Labour of not being honest about their promise to only raise taxes on the top five per cent of earners.
Top Labour figures have insisted their plans to soak the rinse won’t affect those on lower incomes – but have been forced to admit they will be clobbered too.
Mr Johnson said today: “Plainly it is not true that Labour’s tax plans would only affect the top five per cent.
“Labour pretends that huge increases in spending can be financed by just big companies and the rich.”
The scrapping of the marriage allowance will cost low-earning Brits 250 a year, for example.
The IFS’s Stuart Adam also warned it would be another blow to the worse off.
He explained: “None of this will come from the top five per cent, and only from the 95 per cent.
“Abolition of marriage allowance is an income tax just for the 95 per cent.”
But Labour’s John McDonnell hit back today, saying they were “ambitious for our country” and the investment needed – including the “compensation for the injustice” that Waspi women suffered.
He added: “What is also clear from the IFS is that under the Conservatives there will be no change and austerity will continue to undermine our public services.”
Meanwhile, the IFS said the Conservatives’ plans weren’t ambitious enough.
They said that public spending on health would still be 14 per cent lower in 2023 than it was in 2010-11.
And they said their plans won’t end austerity as the party claimed.
It comes after Mr Corbyn was skewered over his financial plans in a gruelling Andrew Neil interview earlier this week.
The Labour leader had previously insisted that only the richest would face tax rises.
On Tuesday night he then admitted married couples would be losing 250, but claimed they would benefit in other ways, like through better public services.
The PM’s plans will see the Tories spend just 1 for every 28 splurged by the leftie leader.
Mr Johnson wants to spend around 3billion on extra day-to-day spending compared to Mr Corbyn’s 83bn, as revealed in yesterday’s Tory party manifesto.