The secrets of what Labour will tax

Ideas being discussed in Labour circles include a ‘tax swap’ to cut national insurance and raise income tax rates, writes Andrew Grice

Starmer is determined not to hand ammunition to the Tories (AFP via Getty Images)

Two factors will constrain Keir Starmer when Labour finalises the key planks of its general election manifesto this summer ahead of the party’s annual conference in October. With the timing of the election in the Tories’ favour, Labour wants to be in election mode a year from now.

Firstly, a self-imposed fiscal straitjacket due to the state of the public finances and the need to maintain Labour’s hard-won economic credibility. Liz Truss has made the party’s task harder; it could not risk an arm-wrestling contest with the financial markets.

Secondly, Starmer is determined not to hand ammunition to the Tories. Instead of the £90bn a year increase in day-to-day spending by 2024 in Jeremy Corbyn’s 2019 manifesto, Labour is likely to propose a more modest rise of between £10bn and £20bn.