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Evening Standard
Evening Standard
World
Nicholas Cecil

Tax hit on UK to rise if Tories win election, admits Michael Gove - but by 'even more under Labour'

The tax hit on Britain will rise after the election if the Tories win, Cabinet minister Michael Gove admitted but he argued Labour would hike it by even more.

Leading economists have warned that which ever party wins the tax burden is due to rise, partly due to the stealth tax freezes thresholds for levies including income tax.

Levelling-up Secretary Mr Gove defended the Conservatives’ record on raising taxes to deal with the Covid pandemic and impact of Putin’s invasion of Ukraine.

But he was then pressed that taxes would continue rising over the next five years under both Tory and Labour plans unveiled in their manifestos.

Mr Gove responded on Times Radio: “Yes.

“But there is a difference and a distinction.

I don’ think there is anyone who thinks that after five years of Labour or five years of the Conservatives that taxes would be higher under the Conservatives than under Labour.

“There is a straight forward choice.”

He sought to argue that Labour would raise council tax if Sir Keir Starmer gets into power and that this was the “dog that hasn’t barked” yet in the election.

Rishi Sunak has pledged to cut a further 2p off National Insurance and to scrap the main rate of NI for the self-employed.

Both parties have ruled out increases to the rates of income tax, National Insurance and VAT.

But there is confusion over Labour’s stance on council tax.

The Tories have also claimed that if Sir Keir gets into No10, households would be hit with a tax hike of £2,000.

But this allegation has been undermined by the Treasury, independent fact checkers and even the UK’s statistics watchdog, with the latter stressing that this was a figure over fours years, not one, a fact that ministers have failed to highlight.

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