9am Lowdown: Election, IFS, triple lock pledge

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Welcome back from the bank holiday weekend. In the news this morning we have more triple lock rumblings on the campaign trail.

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Tax lock pledges are 'bad policy'

The Institute for Fiscal Studies (IFS) has deterred politicians from making any election pledges on a tax lock, dubbing the conservative party’s 2015 tax lock pledge as a “bad policy”.  

As reported by the BBC, IFS analysts Helen Miller and Barra Roantree said: "This so-called 'tax lock' is a serious constraint because these three taxes contribute almost two-thirds of tax revenues.

"A government that wanted, or thought it might be necessary, to raise additional revenues in future would be foolish to tie their hands by ruling out increases in these workhorse taxes."

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Conservatives would end pension triple lock

Meanwhile, Theresa May hinted over the weekend that she would retire the pension triple lock, but promised not to increase VAT if the Conservatives are successful on 8 June, Sky News reports.  

Speaking on BBC’s Andrew Marr show, May said: “We have absolutely no plans to increase the level of tax but I'm also very clear that we don't want to make specific proposals on taxes unless I'm absolutely sure that I can deliver on those.

"But it would be my intention as a Conservative government and as a Conservative prime minister to reduce the taxes on working families.

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McDonnell against VAT and national insurance rises  

Labour’s shadow chancellor told The Guardian over the weekend that although he could not pre-empt the party’s manifesto, he suggested that there would be no VAT or national insurance rise under a Labour government.

Hinting at what pledges could feature in Labour’s manifesto, McDonnell said: ““To give an indication, I called on the chancellor at the last Treasury questions to commit himself to no VAT increase and no increase on national insurance contributions in the way he tried to do it at the budget, and also commit to the triple-lock [on pensions],” he said. “He refused to say that, so that might give you some indication of where I’m going.”

McDonnell also said that he was against the mansion tax policy and would be making his case to the party.

About Richard Hattersley

Richard Hattersley

Richard is AccountingWEB's practice correspondent. If you have any comments or suggestions for us get in touch.


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