Labor slams Liz Truss’ tax cut as ‘very risky approach’ and promises to reduce burden on ‘workers’

Britain’s Labor Party would restore the top tax rate of 45% if it wins power, but will maintain the basic rate cut announced by the Conservative government of Liz Truss on Friday, leader Keir Starmer said.

Considering the Tories’ tax giveaway a “very risky approach”, Starmer told the BBC on Sunday he would take a different route and “build the economy from the bottom up”.

The tax burden should be reduced “on workers”, Starmer said at the start of his party’s four-day conference in Liverpool, northwest England. He supported reducing the basic rate of income tax from 20% to 19%, but said abolishing the top tax rate – levied on those earning over £150,000 ( $163,000) – was the “wrong choice” and vowed to reinstate this.

Chancellor of the Exchequer Kwasi Kwarteng presented a budget in all but name on Friday that was the biggest tax giveaway in half a century as the Tories have bet everything on growth. who fed investor concerns that the national debt will swell and inflation will soar.

At the same time, the Truss government’s approach gave Starmer the opportunity to draw lines of demarcation with the ruling conservatives. The Labor leader is under increasing pressure within his party to set out a clear vision for power, with two years due before the next general election.

But by backing a cut in the basic rate of income tax and backing the government’s reversal of a recent National Insurance increase, he will face questions over how these measures will be paid for. while he also pledged to invest in public services.

Andy Burnham, Labor mayor of Greater Manchester, told Sky News on Sunday that he did not believe tax cuts should be a priority during the cost of living crisis amid runaway inflation.

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Starmer said the prospect of Labor winning power was now within his reach. “The hope of a Labor government has turned into a belief in a Labor government,” he said. He also unveiled plans to deliver a “carbon-free electricity system” in the UK by 2030.

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