Labour’s spending wish list will cost £74billion a year by 2028, bombshell Treasury analysis reveals
LABOUR’S spending wish list will end up costing £74billion a year by 2028, bombshell Treasury analysis reveals.
This week, Chancellor Jeremy Hunt unveiled a dossier claiming Labour’s plans have a £38.5billion black hole.
That is the equivalent of £2,094 for each working household — but a more detailed Treasury analysis of Labour’s spending aspirations now suggests it will be far higher.
The number crunchers put the spending figure at £74.2billion by 2028-29.
The plans include ending new oil and gas licences, losing £5.7billion every year in tax revenue.
Scrapping business rates would cost £26.3billion a year and ending income tax rates freezes £33.5billion annually.
A Tory source said: “Labour’s multi-billion unfunded black hole just got a lot worse and without a plan to pay for it, it will be back to square one with Labour with higher taxes.
“Rishi Sunak and the Conservatives are sticking to the plan meaning we can deliver tax cuts worth £900 for the average worker, putting more money in people’s pockets to ensure they can build a brighter future for them and their families.”
Labour has accused the Tories of their own spending black hole after Rishi Sunak said his long-term ambition is to abolish national insurance.
A Labour spokesperson said: “These desperate claims from the Conservatives are simply untrue and a distraction from Rishi Sunak’s £46 billion unfunded policy to abolish national insurance.
“The British people know that they are worse off after fourteen years of Conservative chaos and the disastrous mini-budget.
“Every Labour policy is fully funded and fully costed. Labour will deliver economic stability with tough spending rules, so we can grow our economy and keep taxes, inflation and mortgages as low as possible.”