Labour condemn Tory claim that tax would rise by £2,400 under Corbyn as 'fake news'
12 November 2019, 00:03 | Updated: 12 November 2019, 00:28
The Conservatives have claimed that people would have to pay £2,400 more tax every year to support Jeremy Corbyn's spending plans, however Labour have accused them of "fake news".
Chancellor Sajid Javid has defended the Conservative's claims that Jeremy Corbyn's "reckless spending spree" would cost £1.2 trillion and open a "huge black hole" in the nation's finances.
However, the Labour party have accused them of spreading "fake news" with their claims.
The Tories have said analysis of Labour's spending plans shows that only £277 billion of the party's £651 billion of resources spending is covered by taxes under their current plans, meaning that Labour would have to put up taxes to cover the spending.
Mr Javid said: "Jeremy Corbyn is planning a reckless spending spree which we will all have to pay for. He will open up a huge black hole in the nation's finances and hardworking people will be the ones that suffer.
"In order to pay for his policies, he will not only have to massively increase borrowing and debt, he will also need to hike up taxes by £2,400 per person - this is equivalent to an entire month's pay for the average earner.
He continued: "The British people have made huge progress over the last decade in repairing the damage left to us by the last Labour government. If Jeremy Corbyn gets into power he would throw all that hard work away.
"A vote for Corbyn's Labour is a vote for higher taxes and the chaos of two more referendums.
"Only a sensible, majority Conservative government will get Brexit done and provide the economic certainty that families and businesses need to plan for the future. We simply cannot afford the cost of Corbyn."
However, Shadow Treasury minister Jonathan Reynolds said: "This is more fake news from Conservative HQ after Sajid Javid had his plan to use the civil service for party political ends scuppered.
"Labour will set out our plans and our costings fully when we release our manifesto.
"The Conservatives should spend more time looking at their own policies as they failed to produce costings at the last election and, as Kwasi Kwarteng demonstrated, have no idea about the cost of their own policies."
Mr Javid's accusations come after he said Labour would spend an extra £650 million a day if it won the General Election, labelling the levels of spending "eye-watering".
But Labour condemned the analysis as a "ludicrous piece of Tory fake news" and an "incompetent mish-mash of debunked estimates and bad maths".
Mr Javid also said Labour's proposals, which include plans to renationalise rail, mail, water and energy, were "absolutely reckless" and equivalent to funding the entire NHS budget for nine years.
The analysis, overseen by Mr Javid, and published in a 35-page dossier, is based on costings for Labour's last manifesto and its most recent pledges, spread across a five-year period.
It assumes the Opposition would immediately sign up to a 32-hour week, abolish private schools and pilot a universal basic income.