John McDonnell unveils Labour spending spree funded by soaring tax bills for middle-class families 

Middle-class families face soaring tax bills to pay for a massive increase in state handouts and giveaways under Hard-Left plans unveiled by Labour.

Shadow Chancellor John McDonnell yesterday said Labour would bring about a mass ‘redistribution of wealth and power’ across the UK if it wins a general election.

He said he would introduce a series of ‘socialist’ economic policies and confirmed his party would hammer middle-class families with increases in income tax, stamp duty and inheritance tax, and target businesses with corporation tax rises and a new financial transaction levy.

Mr McDonnell yesterday laid out details of his socialist plans as he claimed his party wants a general election ‘as soon as possible’ – despite voting against it when proposed by Boris Johnson earlier this week.

He said he would use taxation to pay for the introduction of a range of universal free services, which could include free access to swimming pools, bus services and public park facilities, and an increase in spending on benefits to provide a ‘proper social security safety net’.

At an event in Glasgow, Mr McDonnell said: ‘We are preparing for a general election, we are preparing for entering into government as well. And the vision that we have is Jeremy Corbyn entering Number 10, and I say a socialist in Number 10.’

He said he would introduce a series of ‘socialist’ economic policies and confirmed his party would hammer middle-class families with increases in income tax, stamp duty and inheritance tax [File photo]

Andrew Bowie, vice chairman of the Conservative Party, said: ‘The biggest dangers to our economy are the shambolic policies of Jeremy Corbyn and John McDonnell.

‘They have a tax for every occasion and would raid the pockets of families, with millions of people up and down the country paying the price.

‘Only Boris Johnson and the Conservatives will get Brexit done and continue to grow our economy so we can focus on the things that matter.’

Mr McDonnell claimed that the Tory cabinet were ‘Far Right extremists’ who would strike ‘a deal with Trump that would sell our country out’ and said Labour can be a ‘radical’ alternative across the UK.

Laying out details of Labour’s plans for a five year term in government, he said he would bring about ‘transformational socialist change’ by extending universal basic services, covering areas including parks, swimming pools and bus services.

He said: ‘We want to base our manifesto, as it is developed, on the expansion of universal basic services, and you will see that debate taking place at Labour conference in a few weeks time about the range of services that we believe should be universal, paid for by direct taxation.’

He added: ‘Universalism will underly all those vital services we believe we should depend upon, of course, and also ensure they are life-enhancing.’

Social security payments must also provide a ‘basic safety net’, Mr McDonnell said, while Labour would introduce a new system to replace universal credit, scrap the bedroom tax, increase employment support allowance and carer’s allowance.

Mr McDonnell yesterday laid out details of his socialist plans as he claimed his party wants a general election ‘as soon as possible’ – despite voting against it when proposed by Boris Johnson earlier this week

Asked how we would change taxation to pay for the promises, Mr McDonnell said: ‘The manifesto will be fully costed, we will publish a ‘grey book’ alongside the manifesto as we did last time, and we will set out our proposals.

‘Proposals that we had last time was increasing income tax on the top five per cent – 95 per cent of the population protected – yes we will reverse some of but not all the corporation tax cuts that have taken place, we will reverse some of those inheritance tax cuts, and yesterday we launched a report… about financial transaction tax. 

‘We put it in our last manifesto in our grey book, this one actually looks at how we extend stamp duty a bit further and brings in another couple of billion a year and that will go directly to NHS and education.

‘It will be fully costed and basically what we are saying is it is going to be fair taxation system, finally.