Tories Claim Labour Manifesto Breach if Tax Threshold Freeze Extension Occurs

The Conservative Party has argued that extending the freeze on tax thresholds violates the Labour Party’s electoral promises. Mel Stride, the shadow chancellor, expressed concerns during a press conference in London, labeling the freeze on income tax thresholds as a “stealth tax” that negatively impacts working families.

Labour’s Tax Commitments

Prior to the general election, the Labour Party pledged not to raise income taxes, national insurance, or VAT for working individuals. Critics, however, have accused them of breaching this pledge after raising national insurance contributions for employers, arguing that the promise should have encompassed all taxpayers.

Impact of the Tax Threshold Freeze

• The current freeze was implemented by the Conservative administration and is set to end in 2028.
• New reports indicate that Labour’s chancellor, Rachel Reeves, may prolong the freeze for an additional two years, potentially generating £8 billion.
• This extension could result in average tax increases of £900 per year for families, with some facing a total loss of £1,300.

Reactions from Conservative Leaders

During the press conference, Stride emphasized remarks from Reeves where she mentioned, “extending the threshold freeze would hurt working people.” Kemi Badenoch, the Conservative leader, also criticized the proposal, suggesting it would be used to finance increased welfare spending.

Concerns About Welfare Spending

• Badenoch highlighted a potential increase in spending of £3.5 billion if Labour abolishes the two-child benefit cap.
• She asserted that the cap ensures fairness by making families reliant on benefits make similar choices about having children as those not on benefits.

Alternative Proposals from Reform UK

Meanwhile, Nigel Farage, head of Reform UK, claimed that his party has identified £25 billion in potential savings by targeting foreign nationals. He proposed limiting Universal Credit to British citizens and raising immigration fees.

Criticism of Political Plans

Labour Party chair Anna Turley responded to both Conservative and Reform UK strategies. She criticized their proposals as unrealistic and potentially harmful to the economy, suggesting they could lead to austerity. Turley emphasized the importance of maintaining investments in public services.