JEREMY Corbyns fantasy spending plans have been slammed as not credible by an economics expert who says they will hit ordinary Brits in the pocket.
The Labour boss plans to pay for his Marxist vision of 1970s-style renationalisation by raising 82.9bn with a series of 12 tax hikes.
It comes as Mr Corbyn
- Attacks business chiefs and vows to increase corporation tax to 26 %
- Dodges position on Brexit but promises to renegotiate Boris’ deal
- Plans renationalisation of our industries despite it hitting pensions
- Rows back on zero-carbon emissions target and promises reductions
But Paul Johnson, director of independent think-tank the Institute for Fiscal Studies, said it was simply not credible for Labour to raise the sum by slapping a tough tax on businesses and Britains highest earners.
He told ITV: “You cannot raise that kind of money in our tax system without affecting individuals.
Mr Johnson was stunned by Labours radical spending plan.
He said: “Its impossible to overstate just how extraordinary this manifesto in terms of the sheer scale of money being spent and raised through the tax system.
“Hundreds of billions of additional spending on investment, 80 billion plus per year on spending on day-to-day things; social security, spending on the NHS, students loans and so on.
Matched by, supposedly, an 80 billion increase in tax.
“These are vast numbers – enormous, colossal, in the context of anything weve seen ever really.
Mr Corbyn has slapped businesses with a corporation tax hike of 26 per cent, with wealthy Brits earning more than 125k and 80k also having their pockets hit.
The leftie-leader plans to enforce a new second homes tax, a transaction tax on bankers, reversing inheritance tax cuts and imposing VAT on private schools to pay for his radical regime.
To try and win the green vote, Mr Corbyn has pledged to enforce a windfall tax on oil companies to those who have knowingly damaged our climate will help cover the costs.
It also emerged that households face shelling out an extra 216 a year in taxes to cover the cost of Labour’s plans to freeze state pension age at 66.
According to financial provider AJ Bell, it could see the government forking out an extra 6bn a year to meet the increased cost of more people taking their state pension.
And this cost could be passed on to the UK’s 27.8million households.
Mr Johnson slammed the proposals as the most punitive financial regime on the planet.
He said: I reckon that will make this just about the most punitive corporate tax system in the world, certainly among the top of the end.
I think that will be a very dramatic change in how we tax corporate.
But despite the warnings, Mr Corbyn told Britain’s richest he did not care if they hate him – because he stands with the “people”.
Mr Corbyn said: “We will go after the tax dodgers, the bad bosses and the big polluters so that everybody in our country gets a fair chance in life.”
The Labour boss said there would be no increase in VAT, income tax or National Insurance for anyone earning less than 80,000.
Mr Corbyn also told supporters that the Universal Credit benefits scheme will be scrapped.
Despite Mr Corbyn’s vow to clapdown on oil companies – he has not agreed to lay out a net-zero target for carbon emissions, instead promising to aim to achieve a substantial majority of reductions by 2030.
For young people, Labour has vowed to ensure 16 year olds are given the vote but Mr Corbyn has not pledge to write off existing student debt.
The policies were cheered by his far-left mob of supporters who booed BBC journalist Laura Kuenssberg as she got up to ask a question.
Applause greeted the Labour boss’ plans to transport Brits back to the 1970s by renationalising our industries including rail – despite it hitting the pensions of ordinary hard-working Brits.
His plans to dish out free broadband for all costing the taxpayer 160billion – and introduce a four-day working week have been blasted as crackpot.
CEOs have warned they will flee Britain if Labour continues with their vitriolic attack on business.
But shadow chancellor John McDonnell has ignored their calls – vowing to “rewrite the rules of our economy and slap them with more red tape.
Mr Corbyn also took aim at Boris Johnson and again accused him of plotting to sell off the NHS to US pharmaceutical companies – a claim the furious PM has strongly denied.
He said today: “Johnson is preparing to sell out our NHS for a US trade deal that will drive up the cost of medicines and lead to the runaway privatisation of our health service.
“We say it loud and clear: our NHS is not for sale.”
On Brexit, the party will keep to the position decided at its autumn conference of renegotiating an exit deal with the European Union by March and then putting those terms to a public vote within another three months, with Remain as an option.
The manifesto also contains intentions to significantly boost NHS spending, create a 10 minimum hourly wage for all, and tackle climate change by creating jobs in a “green industrial revolution”.
A spree of social house building – the largest since the 1960s – will also feature, with a 75 billion plan, paid for through borrowing, to construct 150,000 homes a year.
But the Labour boss is set to be plunged into yet another spending row after claiming the Labour manifesto was fully costed.
Mr Corbyn insisted his party had done the maths for their expensive array of policies – only for it to show in the small print they might have got it wrong.
His party had promised nationalising companies would be “fiscally neutral”, only for his own manifesto to admit “there may be some further capital expenditure”.
It also emerged theyd already got the price of running British broadband wrong, with the party changing its figures just one week on from the fanciful announcement.
The leftie leader had originally claimed it would cost 230million, only to admit now the figure is a massive 579m.
Another footnote uses analysis from IPPR, who are independent, but were criticised by charity watchdog in 2015 for appearing to be close to the Labour party.