Chancellor Jeremy Hunt and Rachel Reeves have ruled out raising VAT after the general election amid a furious row about each other’s tax plans. Labour shadow chancellor Rachel Reeves was accused of secretly planning to raise taxes to fund for the party’s spending pledges if they win the general election. But shadow Treasury minister Darren Jones denied the remarks and said Labour will not cut public services and some areas like defense and healthcare will “have a kind of protected status”. During the morning press round, Mr Hunt said that the Tories will keep VAT as it stands but confirmed he will continue to freeze income tax thresholds for four more years. Meanwhile, Diane Abbott has vowed to be the MP for Hackney North and Stoke Newington “as long as it is possible” amid a row over her political future. The veteran MP had the Labour whip restored on Tuesday, but the question of whether or not she will be able to stand as a candidate for the party in the general election remains mired in uncertainty. Parties must finalize the list of candidates standing on July 4 by next week.
General election latest: Tories and Labour locked in VAT tax plan row as Diane Abbott vows to stand as MP
Related: Starmer responds to Jeremy Corbyn standing as an independent candidate
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Chancellor Jeremy Hunt and Rachel Reeves have ruled out raising VAT after the general election amid a furious row about each other’s tax plans.
Labour shadow chancellor Rachel Reeves was accused of secretly planning to raise taxes to fund for the party’s spending pledges if they win the general election.
But shadow Treasury minister Darren Jones denied the remarks and said Labour will not cut public services and some areas like defense and healthcare will “have a kind of protected status”.
During the morning press round, Mr Hunt said that the Tories will keep VAT as it stands but confirmed he will continue to freeze income tax thresholds for four more years.
Meanwhile, Diane Abbott has vowed to be the MP for Hackney North and Stoke Newington “as long as it is possible” amid a row over her political future.
The veteran MP had the Labour whip restored on Tuesday, but the question of whether or not she will be able to stand as a candidate for the party in the general election remains mired in uncertainty.
Parties must finalise the list of candidates standing on July 4 by next week.
Key Points
Show latest update 1717061112
David Lammy takes the stand
The shadow foreign secretary starts saying: “The first time I ever left the inner city constituency of Tottenham I was nine years old and it was Wales that I came to.”
He then goes on to attack the Tories for rising numbers of small boat crossings and claims slams Rishi Sunak’s Rwanda plan.
Mr Lammy says: “The Rwanda scheme that the government has put forward is nothing more than a shameless gimmick.
“It will only remove 1 per cent of small boats crossings a year, this will never deter organised crime.”
He promises Welsh voters that with a Labour government in Cardiff and one in Westminster, they have a plan “smash the gangs and prosecute organised crime”.
Mr Lammy says: “Labour will stop the chaos.. and rebuild our broken asylum system.”
Salma Ouaguira30 May 2024 10:25
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Hunt admits income tax will rise until 2028 because of frozen thresholds
Jeremy Hunt was forced to admit that the Tories will in fact increase taxes until 2028 by continuing to freeze the thresholds where income tax is paid, reports David Maddox.
It is estimated that 4 million people who have never paid income tax before will be dragged into paying because of the policy while an extra 3 million will be dragged into the 40p higher rate.
As wages go up with inflation the point where the tax bands start does not shadow those increases meaning that the tax paid on wages goes up.
Earlier Paul Johnson from the Institute of Fiscal Studies (IFS) described the threshold freezes as a “significant” tax rise.
Mr Hunt told Radio 4’s Today programme: “I want to confirm that a future Conservative government will not increase National Insurance or VAT.”
But he was challenged by presenter Nick Robinson over the plan to increase income tax til 2028 because of the frozen thresholds.
“Are you going to reverse that or did you misspeak now?” Mr Robinson asked.
Mr Hunt responded: “Neither because the tax rises happened as a result of the pandemic and the energy shock – these two giant shocks.
“Let’s be crystal clear. In the autumn of 2022 I took very difficult decisions, yes to increase taxes and now in my budget and in the autumn statement last year and in my budget I have started to bring them down. Have I been able to cancel all those tax rises?”
He added: “I can absolutely undertake that the threshold freeze which we introduced to 2028 will not continue after that.”
Maryam Zakir-Hussain30 May 2024 10:20
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Pictured: SNP leader John Swinney in Edinburgh
Scottish National Party Leader John Swinney and cabinet secretary Mairi McAllan during a visit to The Dower House Cafe in Edinburgh (Jane Barlow/PA Wire)(Jane Barlow/PA Wire)
Salma Ouaguira30 May 2024 10:18
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Starmer launches Labour rally in Wales
Sir Keir Starmer is in Abervanney, Monmouthshire launching his campaign trail to Welsh voters.
Vaughan Gething, who faces a confidence motion in the Senedd, leads the event.
The first minister says: “Tory economic vandalism and chaos has put working families to the edge.”
Blaming the Conservatives for spiraling food costs, he adds: “At every turn over the last 14 years, the Tories have tried to block Welsh Labour from delivering transformational change for our country. They slashed our budget, blocked our legislation and day after day after day they put politics above people. Treating politics as a game, not a route to opportunity, hope and security.
“Just a few months ago Rishi Sunak wouldn’t even pick up the phone to Mark Drakeford to help save thousands of steelworkers’ jobs. But Sunak wants you to save his job. But he wouldn’t lift a finger or a phone to save yours… Rishi Sunak and the Tories will never stand up for Wales.”
Salma Ouaguira30 May 2024 10:09
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Diane Abbott accuses Starmer of ‘cull’ of left
Diane Abbott has accused Starmer of an “appalling cull of left-wingers” as she remains in a limbo of uncertainty over she will fight for Labour at the election.
The veteran MP has reiterated she will fight for her seat for as long as possible.
But attacks on the Labour leadership grew after Faiza Shaheen claimed the party banned her from standing.
Salma Ouaguira30 May 2024 10:07
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Faiza Shaheen speaks out after Labour blocks candidacy in general election
Reports suggested the economist would be suspended by the party after she allegedly liked a series of posts on X that downplayed antisemitism accusations.
“They briefed the press before they even had the decency to call me… I’m so shocked right now, to be treated this badly after being such an active member,” she added.
The Independent has reached out to Labour for comment.
Faiza Shaheen speaks out after Labour block candidacy in general election
Maryam Zakir-Hussain30 May 2024 09:59
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Tories taunt Keir Starmer over Diane Abbott fiasco
Chancellor Jeremy Hunt has ruthlessly seized on the chaos in the Labour Party over the future of Diane Abbott which has sparked a revolt on the left of the party, David Maddox reports.
Labour leader Sir Keir Starmer was accused on Radio 4’s Today Programme ths morning of “dithering” over the trail blazing MP and first black woman to be elected to Parliament in Britain.
Speaking on the Today Programme this morning, Mr Hunt centred in on row being a issue about the Labour leader’s character ad whether he is fit to be prime minister. He said: “If Keir Starmer can’t deal with Diane Abbott how on earth is he going to deal with Vladimir Putin?”
(Getty)
Salma Ouaguira30 May 2024 09:55
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Plaid Cymru launch their election campaign in Bangor
Party leader Rhun ap Iorwerth says a vote for Plaid Cymru would guarantee “fair funding for Wales” if elected.
Speaking to ITV ahead of the rally, he said: “It is clear that people across Wales have called time on this disastrous and destructive Conservative government. Voting Plaid in constituencies like Ynys Môn is essential in keeping the Tories away from Westminster and out of Wales.
“At the same time, voting Plaid in Carmarthen and Bangor Aberconwy keeps Labour in check too. Plaid’s positive message of a fairer, more ambitious Wales, shows that we are the only party putting the interests of the nation ahead of party interests.”
Salma Ouaguira30 May 2024 09:45
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Campaign pledges: Has Rishi Sunak met his targets?
The prime minister pledged that “more will change in the next five years than in the last 30” in a pre-election speech to voters.
But how many promises were actually delivered by the end of 2023, and which have failed to meet the mark? Here’s an analysis from our data correspondent Alicja Hagopian.
Halve inflation: The commitment to halve inflation in 2023 was successful. However, the cost of living is still being felt by many Brits.With a benchmark of around 5.4 per cent (half of 10.7 per cent at the end of 2022), inflation settled comfortably below this number, ending at 4.0 per cent in December 2023, according to data from the Office of National Statistics (ONS).Grow the economy: According to ONS data, the UK economy was stagnant or shrank for most of 2023, ending at a minor recession of -0.3 per cent in the final quarter of the year.Reduce debt: The UK’s debt pile has reached £2.7 trillion, up by nearly £200 billion from January 2023. As a proportion of GDP, debt has also continued to rise, exceeding the total GDP at 101.3 per cent.Cut waiting lists: NHS data shows that the number of patients waiting for non-emergency treatment is at 7.54m as of March 2024, around 300,000 (4.5 per cent) higher than when Sunak pledged to cut waits in January 2023.‘Stop the boats’: In 2023, there were less small boat crossings across the English Channel than in 2022, down by over a third to 29,437. Some 7,567 people were detected crossing the English Channel from January to April 2024, a new record for the first four months of a calendar year.
Salma Ouaguira30 May 2024 09:40
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Labour’s candidate uncertainty overshadows campaign as Starmer accused of purge
Labour’s General Election campaign has been overshadowed by internal chaos as Sir Keir Starmer was accused of trying to purge the party’s left.
Questions about whether Diane Abbott will be barred from standing again remain as the party suspended one candidate and declined to endorse another.
Labour Party leader Sir Keir Starmer insisted no decision has yet been taken about whether Ms Abbott – who in 1987 became the first black woman elected to Parliament – would be allowed to defend her seat.
Maryam Zakir-Hussain30 May 2024 09:36
Read the full story on www.independent.co.uk
https://www.independent.co.uk/news/uk/politics/general-election-diane-abbott-starmer-sunak-labour-news-b2553642.html