Labour is reportedly preparing to cut taxes and National Insurance if the party gets into power in a bid to gets votes at the next General Election, which is expected this year.
Labour Party leader Keir Starmer and Shadow Chancellor Rachel Reeves are said to be floating a “retail” offer to voters to ease peoples’ cost of living concerns.
Tax will be at the forefront of the next General Election with the Tories already reportedly considering slashing inheritance tax at the upcoming Spring Budget on March 6.
Ms Reeves reportedly wants the tax burden to drop and is prepared to introduce “bombproof” tax cuts.
Labour could vow tax cuts at General Election to ‘see burden come down’
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A source close to the Shadow Chancellor told The Times: “She has said she wants to see the tax burden come down.
“She has made the argument that taxes on working people are too high. Any offer has got to be bombproof; it's got to be credible.”
The Labour Party recently launched a Tory tax calculator to help voters determine if they are “worse-off” under the current Government.
As announced in the Autumn Statement last year, the Government will slash class 2 National Insurance contributions from 12 to 10 per cent on January 6.
This was touted by Prime Minister Rishi Sunak during his Christmas special as a “tax cut for 27 million people” which an average annual saving of £470, however Britons' income tax burden is increasing due to frozen tax bands.
The Government is being called to introduce further cuts to income tax rates but some are suggesting thresholds should be raised to avoid fiscal drag.
Inheritance tax is considered the most likely levy to be cut or slashed entirely in the upcoming Spring Budget.
During the last Autumn Statement, Chancellor Jeremy Hunt asserted the Government’s long-term goal to “reduce the tax burden”.
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The tax burden is the highest its been since WWII PA However, the Conservatives have been criticised at the same time for overseeing the greatest tax increases since Second World War.
Sian Steele, the head of tax at wealth management firm Evelyn Partners, outlined why the next Budget will be the Government’s last chance to set the tax agenda before going head-to-head with Labour at the next General Election.
She shared: “Whether or not it is a precursor to a May election, this promises to be an exciting event as the Chancellor has a last swing of the tax bat to try and inspire a jaded electorate in what could be a last bid to save the Conservative government.
“Hunt said after his Autumn Statement that he hoped to be able to ‘reduce the tax burden still further in the future’, and as soon as the Budget date was announced the rumour mill swung into action with predictions that inheritance tax or income tax will be cut.”