John McDonnell: Labour to launch a middle class tax raid

Labour have unveiled plans to launch a middle class tax raid on high earners if they seize power and move into Downing Street.

John McDonnell said he would impose an emergency Budget within days if his party manages to oust the Tories from power.

And he warned those with private health insurance will also be told they have to cough up more under a Jeremy Corbyn government. 

The revelation comes after a think tank, the Centre for Policy Studies, estimated that Labour plans to renationalise large swathes of industry would cost some £176bn – slapping every household with a £6,500 bill.

John McDonnell said he would impose an emergency Budget within days if his party manages to oust the Tories from power (file pic)

In an interview published today, Mr McDonnell said Labour would hike taxes for some Brits in order to bankroll the NHS.

He said: ‘Families are in distress and NHS staff working longer hours are at their wits’ end. 

‘The cause is lack of funding. People realise we need to pay more for our NHS but it has to be done in a fair way.  

‘We would ask those who earn the most to give a little more.’

Mr McDonnell – who if Labour is elected would become Britain’s first Marxist Chancellor – said he would raise tax to pump another £5.1billion into Britain’s crisis-hit NHS.

The Labour frontbencher said this NHS emergency Budget would impose a series of tax hikes on Britons.

He said those earning more than £123,000 a year paying 10 per cent more income tax – 50p in the pound. 

While those earning more than £80,000 would be asked to pay up 45p in income tax. 

He told The Sunday Mirror that these tax hikes would raise £4.7billion a year.

Mr McDonnell also said a Labour Government will increase premium tax on private healthcare insurance to 20 per cent – in line with the VAT rate.

The shadow chancellor also said a Government led by Jeremy Corbyn (pictured at a rally last week)  will increase premium tax on private healthcare insurance to 20 per cent - in line with the VAT rate

The shadow chancellor also said a Government led by Jeremy Corbyn (pictured at a rally last week)  will increase premium tax on private healthcare insurance to 20 per cent – in line with the VAT rate

Labour estimates that this will bring in another £406million and bring the total up to the £5.1billion needed for the emergency NHS Budget.

Mr McDonnell said: ‘Things are so bad the Chancellor must do something immediately. 

‘The NHS has never gone through anything like this before. And the flu epidemic has not really hit yet.’ 

The remarks emerged amid  reports that Boris Johnson is set to press Theresa May to agree to pump another £100million a week into the NHS after Brexit. 

Many leading Brexiteers have urged the Government to make good on the Leave referendum pledge to invest the cash Britain will save by quitting the EU into hospitals and care services. 



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