Labour is plotting a series of tax raids on homeowners, drivers and pensioners based on recommendations drawn up by the International Monetary Fund (IMF), an influential Tory has claimed.
Dame Harriett Baldwin, who chaired the powerful parliamentary Treasury committee, accused shadow chancellor Rachel Reeves of “copying and pasting recommendations straight from the IMF’s playbook” that would lead to higher taxes if Labour wins the July 4 election.
Writing in The Telegraph, Dame Harriett said Labour had already adopted several of the IMF’s recommendations, including a commitment to turbo-charge net zero investment and tear up planning laws, which she said were a grim portent for Britain’s future.
Citing the IMF’s health check of the economy last year, she said: “Let’s look at what else the IMF proposes for the UK – tax rises hidden under the guise of technical phrases like ‘mobilise additional revenues’ and ‘closing tax loopholes’.
“There are proposals to set the capital gains tax rate and levels in line with income tax rates and levels, proposals to subject the sale of your primary residence to capital gains tax, proposals to end inheritance tax loopholes, proposals to revalue all the properties in England for council tax bands, especially those worth over £320,000.
“And as if that’s not enough, they also want the Government to bring in road pricing and bring forward increases in the state pension age substantially. All this is likely to be what Reeves has on her list of tax hikes.”
Sir Keir has refused to rule out raising capital gains tax if Labour wins the next election and is under pressure from some members of the shadow cabinet to raise the tax in order to fund public services.
Dame Harriett said the most “alarming” IMF proposal was scrapping the triple lock and increasing the state pension only in line with prices.
Labour has insisted it will “protect the triple lock on pensions” that ensures the state pension rises each year in line with the highest of prices, wages or 2.5pc.
It has also abandoned plans for a separate raid on pensions by dropping a pledge to reinstate the lifetime allowance.
Dame Harriett said: “Just like Gordon Brown’s £118bn tax raid on pension funds, by opposing our triple lock plus Labour has already confirmed that in the next parliament they will betray pensioners yet again by dragging the state pension into income tax for the first time in our country’s history.”
Last month, Rishi Sunak vowed to press ahead with plans to cut National Insurance for workers despite IMF warnings that the country needs higher taxes.
The Fund said the next government will be forced to raise taxes or cut spending by an estimated £30bn as the economy reels from the worklessness crisis.
The Labour Party has been contacted for comment.
