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Treasury Official Warns Against Misattributing Labour Tax Claims

Lawrence Ankutseby Lawrence Ankutse
June 5, 2024
Reading Time: 4 mins read
Lawrence Ankutseby Lawrence Ankutse
in UK
0
Treasury Official Warns Against Misattributing Labour Tax Claims

Keir Starmer and Rishi Sunak at the ITV debate

A high-ranking Treasury official has issued a stern caution to Conservative ministers, advising against attributing their claim that a Labour government would hike taxes by £2,000 to civil servants. 

The warning comes after Chancellor Rishi Sunak’s persistent assertion during an ITV debate with Labour leader Keir Starmer. He stated that “independent Treasury officials” had calculated the cost of Labour’s policies, resulting in a £2,000 tax surge for all. 

James Bowler, the Permanent Secretary of the Treasury, emphasized that ministers should refrain from implying that civil servants were responsible for generating that figure underpinning the Tory assault. 

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Bowler clarified that a Tory document “includes costs beyond those provided by the Civil Service.” 

He stressed in a letter to Darren Jones, the shadow Treasury chief secretary, that any costings derived from external sources or organizations must not be misrepresented as the work of the Civil Service.

Claire Coutinho, a staunch ally of the Prime Minister, further reinforced the attack, asserting that the figure emanated from “official costings from the Treasury,” prepared by “brilliant, independent civil servants” committed to transparency.

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Coutinho vehemently denied any suggestion that the calculations were influenced by assumptions from special advisers, defending the integrity of the Treasury’s work.

“These are all policies that have been set out by the Labour party and actually, if anything, they are underestimating the cost to families.

“So the costs that came out of the policies is £2,000, but if you look at the most expensive policy, it’s one in my area – it’s their green plan, and they’ve said multiple times that would cost the country £28bn a year and they then actually watered down the cost but they kept the policies.”

Claire Coutinho

According to the Tories, these policies would collectively amount to £38.5 billion, necessitating tax hikes totaling £2,094 per working household.

Sunak contended that Starmer’s policies would deplete pension funds and impose heavier tax burdens on families.

Sunak Poke Holes In Labour Plans

During the debate, Rishi Sunak capitalized on the opportunity to cast doubt on Labour’s fiscal plans. 

Rishi sunak itv debate
Rishi Sunak

“Beyond raising your taxes and raiding your pensions, no one knows what Labour would actually do. But you know what I would do? I’ll cut your taxes, protect your pension, and reduce immigration.”

Rishi Sunak

Sunak went on to later say that Starmer would “reverse all of the changes I’ve made” which would “cost everyone and you thousands of pounds.”

While Starmer initially seemed hesitant to refute Sunak’s tax allegations directly, he said, “This £2,000 he keeps saying it’s going to cost is absolute garbage.”

Sunak also faced accusations of deceit from Jonathan Ashworth, the shadow Cabinet Office minister, during an LBC interview.  According to Ashworth, Sunak resorted to falsehoods due to desperation.

He affirmed that the Labour leader had unequivocally dismissed Sunak’s claims as baseless.

“They lie. We saw it with Boris Johnson over parties in Downing Street in lockdown, and Rishi Sunak has exposed himself as no better and no different than Boris Johnson with his lies last night.”

Jonathan Ashworth

As tensions escalated between the opposing camps, Sunak warned of the dire consequences of reversing the changes implemented by the Conservative government, painting a picture of widespread financial strain under a Labour administration.

In conflicting narratives and heated exchanges, the electorate is left to sift through the rhetoric and evaluate the credibility of competing fiscal agendas as the election campaign unfolds.

READ ALSO: NDC’s Eric Adjei Touts Benefits of 24-Hour Economy Policy

Tags: DebateJonathan AshworthKeir StarmerLabour Tax ClaimsRishi Sunak
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