Labour MPs voted today to introduce a series of tax rises from last week’s Benefits Budget that will hit working families in Central Devon. Labour’s tax hikes include:
· A Working People Tax by freezing personal allowance thresholds
· A Savings Tax by increasing dividend tax rates
· An Inheritance Tax on people saving for the future
· The Family Farm Tax by cutting Agricultural Property Relief
· A Business Tax by reducing Capital Gains reliefs
These tax rises will hit working families across Central Devon, with households facing higher taxes at a time when family finances are already stretched.
Labour’s decision to extend the freeze on personal allowance thresholds for three years breaks Labour’s manifesto commitment and Rachel Reeves’ promises and will drag 1.7 million more people into higher tax bracket s across the country.
For a person earning £47,000 in Central Devon, the threshold freeze could mean paying £1,300 more in income tax and National Insurance over three years.
Additionally, Labour’s Savings Tax will penalise older people who rely on dividend income to support their families. By increasing dividend tax rates by 2 percentage points, are taking money from pensioners who rely on income from dividends. This comes after Labour cruelly cut Winter Fuel Payments to supposedly prevent a ‘run on the pound.
Meanwhile, Labour’s new Inheritance Tax will draw approximately 38,500 more estates into Inheritance Tax, with the average liability increasing by £34,000. This hits families in Central Devon who have worked hard and saved responsibly throughout their lives, only to see their savings raided by Labour to pay for more welfare spending.
There is another way. The Conservative Party has a fully funded plan to cut spending by £47 billion through our Golden Economic Rule. This includes cutting £23 billion from welfare spending and reducing the size of the Civil Service by £8 billion. We would use these savings to cut taxes for working families, not increase them.
Commenting Central Devon Chairman, Mike Knuckey said:
‘Labour MPs voted today to hit working families in Central Devon with higher taxes across the board. Families are already struggling with the cost of living, and Labour’s answer is to take even more money out of their pockets.
‘The threshold freeze alone could cost a working person in Central Devon £1,300. Labour’s Savings Tax and Inheritance Tax will hit grandparents trying to help their families. This is a betrayal of working people.
‘Only the Conservatives have the leader with a backbone, the plan and the team to cut spending with our Golden Economic Rule and reduce tax.’
Shadow Chancellor, Sir Mel Stride MP said:
“Labour promised not to raise taxes on working people - it’s there in black and white. Yet after Rachel Reeves misled the public about the state of the economy, tonight Labour MPs have backed higher taxes to punish hardworking families and fund more benefits. It’s disgraceful, and it shows Labour simply cannot be trusted. Britain deserves better: lower spending, less borrowing, and lower taxes - and only the Conservatives will deliver that.”
