Labour: “We’re not calling for tax rises, we’re calling for growth”

Labour is “not calling for tax rises” but “calling for growth”, the party declared when quizzed on its own plans for the economy after it was reported that the government will review capital gains tax rates.

Following Prime Minister’s Questions this afternoon, Keir Starmer’s spokesperson was asked about the idea of a wealth tax, which Anneliese Dodds had advised the government to consider in early July.

The aide said: “We’re not calling for tax rises, we’re calling for growth. That’s what Anneliese said in the Commons last week. Ultimately, it’s for the government to set out how it’s going to pay for the proposals it has put forward.

“What we need to do at the moment is to stimulate demand in the economy, which will come from protecting people’s incomes and livelihoods.”

Asked who Keir Starmer believes should pay for the cost of the coronavirus-related economic crisis, the spokesperson replied: “We’re at the very early stages of this economic crisis.

“Anneliese set out our position last week in response to the Chancellor’s statement. And she’s crystal clear that the governmernt should focus on growing our economy.”

The spokesperson emphasised that the “priority at the moment has to be protecting jobs” and “people’s livelihoods” as well as “public finances”.

He was then asked whether the opposition party would consider backing an increase in capital gains tax to equalise it with income tax, as the Treasury is reportedly considering.

Capital gains tax is paid on the profit gained from selling an asset, such as a property that is not your home. The rates are currently at 10% for basic-rate taxpayers and 20% for higher and additional-rate taxpayers.

The aide replied: “It’s the Chancellor’s responsibility to make sure that the economy bounces back from the crisis… We’ll look at any proposals that the government puts forward.”

Asked whether Starmer stands by his leadership campaign pledge to increase income tax for the top 5% of earners, his spokesperson replied: “Keir made those commitments during the leadership campaign, but we’re four years out from a general election and the next manifesto will set out our full tax policy at the time.”

Pressed further, he added: “Keir stands by the commitments he made during the leadership election, but in terms of our final tax plans they’ll be set out at the next election in the manifesto.”

The Labour leader’s spokesperson also confirmed that Labour is not calling for mandatory face coverings in offices, after the goverment performed a U-turn and decided to make them compulsory when shopping.

On Boris Johnson appearing to reveal that he has not read the recent report on the risks of a second coronavirus wave, Starmer’s spokesperson said: “It is deeply concerning that the Prime Minister hasn’t even bothered to read it.”