Home / Our policies / Policy overviews / Tax and the economy – at a glance

95% will not see a tax hike – but the richest 5% will

The deficit on day-to-day spending will be eliminated within five years

The 45p income tax threshold will be lowered from earnings of £150,000 to £80,000 a year

A separate 50p band will be introduced on earnings of £123,000

The other 95% of earners will see NO national insurance, income tax or VAT rises

The minimum wage will rise to £10 an hour by 2020 and over-18s will have the same minimum as over-25s

Insurance premium tax will be hiked from 12% to 20% on private health plans

An Excessive Pay Levy – on firms that pay dissproportionate salaries to ‘executive’ staff will be 2.5% on wages over £330,000 and 5% over £500,000

A ‘Robin Hood Tax’ will massively extend an existing 0.5% levy on each share trade

Corporation tax will be raised to 21% from 2018-19, 24% from 2019-20 and £26% from 2020-21, reversing Tory cuts – this still makes the UK’s Corporation tax rates one of the lowest in the developed world

The lower rate for small businesses will be brought back

Small businesses will be offered new support, including loans from regional development banks and exclusion from quarterly reporting rules

Key businesses to be protected from hostile takeovers

VAT will be introduced on private school fees

Tory cuts to Capital Gains Tax will be reversed

Tory cuts to Inheritance Tax will be reversed, moving the threshold back from £500,000 to £325,000