Miliband promises tax rises to limit spending cuts

Labour leader promises to increase taxation on banks and tackle tax avoidance.

By New Statesman Published 30 September 2010

Ed Miliband has given his strongest signal yet that he would raise taxes in order to limit the level of spending cuts. In an interview with Channel 4 News, the new Labour leader emphasised his determination to "improve" Alistair Darling's deficit reduction plan, which would have seen two thirds come from spending cuts and one third from taxation.

"We should look to do more from taxation. For example, taking more from banks or tackling tax avoidance," he said. "If I was in government at the moment, I would be looking - whether it is a tax on the banks or tackling tax avoidance - to lighten the load and the cuts and the impact that it is going to have on ordinary families. I would do more from taxation than Alistair proposed in his plan."

The coalition plans to reduce the deficit through a ratio of 77 per cent spending cuts to 23 per cent tax rises. In a preview of the strategy they plan to use to discredit Labour's new leader, the Conservatives claimed that Miliband would have to raise taxes by a further £35bn -- the equivalent of 7p on the basic rate of income tax -- in order to meet the spending commitments he made during his leadership campaign.

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Tags: Politic News

6 comments

Thu, 2010-09-30 15:14 — Liam2008

Despite what the right-wing press says, this approach isn't necesarily a vote-loser.

In the latest YouGov political tracker poll in The Sun – hidden away in the stats (and unmentioned by the paper) was the fact that a vast majority of CONSERVATIVE (and all other) voters want higher taxes on the rich, a higher minimum wage, better workers rights and more taxes on the banks:

http://etonmess.blogspot.com/2010/09/tory-voters-want-to-tax-rich-higher...

Fri, 2010-10-01 20:13 — sippinatbells (not verified)

Looking at the figures however, the tory support for higher taxes on individuals is thinner, and of course it's couched in terms "those who can afford it" which takes the sting out of the idea. When Ed announces higher taxes on individuals, it will be a GUARANTEED vote loser with the public. The sooner we can accept that as a party, the sooner we can get back in power and start really helping people. Increasing the bank levy, scrapping Trident, re-raising corporation tax, the mansion tax - all great. Income tax rises? Electoral suicide.

Fri, 2010-10-01 13:10 — Martush (not verified)

The key is to close the loopholes that allow business and wealthy individuals to evade/avoid tax.
Lets get the right people to pay for this financial chaos.....people that can afford to, the same ones who profited from irresponsible banking practice! Not just the banks and the traders but the people who invested in them......The most vulnerable in this country or anywhere in the world didnt make £millions from sub-prime mortgage lending or irresponsible/maverick trading!

Thu, 2010-09-30 18:29 — Luddite (not verified)

Most folks don't mind paying taxes. What folks object too, is having them taxes squandered, given away or misused.

Sun, 2010-10-03 12:19 — Luddite (not verified)

Tax rises, now that's a vote winner. The most annoying thing about the political-left is it's ability to pursue a political philosophy that doesn't work, never has worked and never will work but persist in continuing until they fuck-up everyone else's lives, and as for re-raising corporation tax. What would that do force more business to relocate over seas?

Fri, 2010-10-01 16:01 — Peter Gibson (not verified)

I think it right that if you are lucky to have a well paid job with fat bonus's you should pay more in taxation and the low paid £20,000 and under should not pay any income tax. % increases on tax always hits the lower paid. Time to do away with the all tax avoidance.
Also the companies that earn there money here and employ people in far away places ( call centre ops)