Home Money Labor will increase both income tax and corporation tax if it wins election, city businesses warn

Labor will increase both income tax and corporation tax if it wins election, city businesses warn

0 comment
Fears: Six in ten city institutions expect Keir Starmer's party to increase income and corporation tax

Fears: Six in ten city institutions expect Keir Starmer’s party to increase income and corporation tax

Investors believe Labor will renege on its promises and raise income and corporation tax if it wins the election.

In a survey of more than 70 city institutions, six in ten expect Sir Keir Starmer’s party to increase income and corporation taxes. The survey by investment bank Nomura found that only three in ten said they expected taxes to remain stable after a Labor victory.

The findings came despite assurances from the Labor party, which has also been accused by Prime Minister Rishi Sunak of plotting a secret £2,000 tax rise.

Clients surveyed include businesses, pension funds, hedge funds and insurance firms, and expect a Labor majority of 75 seats or more.

Nomura’s George Moran said: ‘Without major changes to interest rates or growth prospects, Labor will face difficult decisions on fiscal policy.

“It would be optimistic to trust in improvements in the economy.”

‘Analysts said both sides face a challenge. Ashley Webb of Capital Economics said: “If they want government spending to be higher, without increasing borrowing, taxes will have to be higher.”

You may also like