Full Labour manifesto policy costs breakdown – and how tax and borrowing fund it

Labour has announced tax plans to raise around £8.5 billion in its election manifesto, as well as £3.5 billion in borrowing, to fund its policy programme.

The proposals include previously announced pledges to charge VAT on private school fees and a windfall tax on oil and gas companies, as well as plans to borrow to fund investment in projects such as Great British Energy and the National Wealth Fund.

READ MORE: Labour manifesto launch: Live updates, stream, reaction and analysis

Here are Labour’s costings in full:

£5.23m from closing non-dom tax loopholes and reducing tax avoidance which will fund the following (and leave cash to spare):

• 40,000 more operations, scans and appointments (costing £1.1m)
• Double the number of NHS CT and MRI scanners (costing £250m)
• Dentistry package including 700,000 urgent appointments every year (costing £125m)
• Free breakfast clubs in every primary school (costing £315m)
• Investment in HMRC to reduce tax avoidance (costing £855m) 

READ MORE: Full manifesto costs breakdown – and how tax and borrowing fund it

£1.51m revenue from applying VAT and business rates to private schools, which will fund: 

• 6500 new expert teachers (costing £450m) 
• Increased teacher and headteacher training (costing £270m) 
• Delivering work experience and career advice for all young people (costing £85m)
• Early language development in primary schools (costing £5m)
• Ofsted reform (costing £45m)
• Over 3,000 new nurseries (£35m) 
• Mental health support for every school (£175m)
• Young Futures Hubs (£95m)

£565m revenue from closing carried interest tax loophole will fund:

• Recruit 8,500 new mental health staff (£410m)
• Legal aid for victims of disasters or state-related deaths (£30m)
• Waive visa costs for non-UK veterans who have served four years or more in the British forces (£10m)

£1.2bn windfall tax on oil and gas giants, and £3.5bn borrowing within fiscal rules, which will fund: 

• Great British Energy (£1.7bn) 
• National Wealth Fund  (£1.5bn) 
• British Jobs Bonus (£0.3bn)
• Warm Homes Plan (£1.1bn) 

READ MORE: Key manifesto themes and headline policies in brief

New policies funded by reallocating current government spending:

• Prioritising frontline public service delivery and public sector capability, funded by halving consultancy spending (£745m)
• 13,000 additional neighbourhood police and community PCSOs; and specialist domestic abuse advisers in 999 control rooms at peak times, funded through a Police Efficiency and Collaboration Programme (£400m)
• A new caseworkers, returns and enforcement unit to clear the asylum backlog, funded by ending the use of hotels for asylum accommodation (£155m)
• A new Border Security Command to tackle criminal gangs behind small boat crossings by scrapping the Rwanda scheme (£75m) 
• Investing in road maintenance to fill in up to 1m potholes every year, by deferring the A27 bypass (£65m) 
• Putting youth workers in A&E units and custody centres, and youth mentors in pupil referral units, through full cost recovery for firearms licences (£20m)
• Appointing legal advocates to provide free legal advice and support to rape survivors across England and Wales, by redirecting PCC grants for victims’ services (£5m)

Find out more through our wider 2024 Labour party manifesto coverage so far:

READ MORE: Labour manifesto launch: Live updates, reaction and analysis

READ MORE: Full manifesto costs breakdown – and how tax and borrowing fund it

READ MORE: The key manifesto policy priorities in brief

READ MORE: Labour vows to protect green belt despite housebuilding drive

READ MORE: Watch as Starmer heckled by protestor inside with ‘youth deserve better’ banner

READ MORE: GMB calls manifesto ‘vision of hope’ but Unite says ‘not enough’

READ MORE: Manifesto commits to Brexit and being ‘confident’ outside EU

READ MORE: Labour to legislate on New Deal for Working People within 100 days – key policies breakdown 

READ MORE: Labour to give 16-year-olds right to vote

READ MORE: Starmer says ‘manifesto for wealth creation’ will kickstart growth

READ MORE: Dodds: ‘Our manifesto is a fully funded vision, while Tories offer a Christmas tree of gimmicks’

READ MORE: IFS: Labour manifesto doesn’t raise enough cash to fund ‘genuine change’

READ MORE: ‘Labour’s manifesto is one the party can promote with confidence’

Read more of our 2024 general election coverage here.

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