McDonnell issues vow to be “first socialist Labour chancellor”

Labour will not raise taxes for the vast majority of workers but will increase rates for those earning over £80,000 John McDonnell said today as he pledged to be Britain’s “first socialist Labour chancellor”.

There will be no rise in VAT, income tax or national insurance contributions for 95 per cent of people, while the higher taxes for the top five per cent has not been fully set out, but are expected to include a higher rate to fund investment in public services.

McDonnell will say, at a key speech later today in London, “The choice at this election is very clear on tax as there is currently only one party which is committing not to raise taxes on middle and low earners.”

“The Tories are the party of tax handouts for the super-rich and big corporations.”

“Every time Theresa May and the Conservatives are asked whether they are planning tax increases if they are re-elected on 8 June, they run and hide,” he is expected to add.

On the Andrew Marr show, McDonnell suggested that those earning over £80,000 would pay a “modest bit more” in tax to fund public services.

“We’re not talking about hitting people hard, we’re talking about modest increases,” he said.

The shadow chancellor also described Labour’s “really disappointing” local election losses as “partly” the media’s fault. He urged greater coverage for Labour’s policies and Jeremy Corbyn as the antidote for this.

When asked by Marr if he were going to be Britain’s first Marxist chancellor, McDonnell responded that “there’s a lot to learn from” reading Das Kapital, but that “I’m going to be the first socialist in the tradition of the Labour Party.”

He suggested that were Labour to lose the election, Corbyn would resign, but he said: “We’re not contemplating any loss. We’re going to win.”