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Labour manifesto ABI summary

Key pledges in the Labour party’s Manifesto include freezing energy prizes until 2017, cutting University tuition fees, abolishing the non dom tax status, raising the National Minimum Wage to £8 an hour and changes to what the party sees as exploitative employment contracts.

Headlines

  •  Every policy in the manifesto paid for without requiring any additional borrowing
  • First Budget would promise to “cut the deficit every year” and verified by the Office for Budget Responsibility
  • Raise the minimum wage to more than £8 by October 2019
  • Rail fare freeze in 2016, and fare rise cap introduced
  • A commitment not to raise the basic or higher rate of income tax, National Insurance or VAT (there is no mention of alteration to the thresholds)
  • Tax credits to be protected
  • Expand free childcare from 15 to 25 hours for working parents of three and four-year-olds
  • Double paid paternity leave for fathers
  • Freeze energy prices until 2017 and reform of the energy market
  • 200,000 new homes a year built by 2020
  • Reverse the 50p tax cut for earnings over £150,000
  • Abolish Spare Room Subsidy
  • Fund 8,000 additional GPs, 20,000 more nurses and 3,000 more midwives, paid for by a tax on properties worth over £2 million, a levy on tobacco firms, and by tackling tax avoidance
  • Bring together services for physical health, mental health and social care into a single system
  • Confirmation that outside of the protected areas of health, education and international development there will be cuts in spending

Taxation

  • Introduce tax on properties worth over £2 million to help raise £2.5 billion a year for an NHS Time to Care Fund
  • Introduce a 10p starting rate of tax, paid for by ending the Marriage Tax Allowance
  • Will not increase the basic or higher rates of Income Tax or National Insurance, or increase VAT
  • Will introduce tougher penalties for those abusing the tax system, end “unfair tax breaks used by hedge funds and others”, and bear down on disguised employment
  • British Overseas Territories and Crown Dependencies will be required to produce publicly available registries of the real owners of companies based there
  • Carry out an immediate review of the tax collection system to close loopholes, and abolish non-dom status
  • Britain will continue to have the most competitive rate of Corporation Tax in the G7
  • Will cut, and then freeze business rates for smaller business properties

Pensions

  • Keep the triple-lock so that the state pension increases by inflation, earnings, or 2.5 percent, whichever is highest
  • Accepts that “increases in the state retirement age are necessary to keep our pensions system affordable, [Labour] will ensure that people have time to plan for changes“
  • Restrict Winter Fuel Payments for the richest five per cent of pensioners
  • Ensure private pensions are good value for those who have saved. Reform the pensions market so that pension providers put savers first, and protect consumers from retirement rip-offs
  • Support greater flexibility for those drawing down their pension pots, but “there must be proper guidance for people to avoid mis-selling”
  • Cut tuition fees from £9,000 to £6,000 a year funded by restricting tax relief on pension contributions for the highest earners and “clamping down” on tax avoidance

Health & Social Care

  • Repeal the Health & Social Care Act
  • Invest an additional £2.5 billion annually in the NHS, recruit 8,000 more GPs, 20,000 more nurses and 3,000 more midwives
  • Guarantee GP appointments within 48 hours and cancer tests within one week
  • Give mental health the same priority as physical health, with a new right to access talking therapies
  • End time-limited 15 minute social care visits and recruit 5,000 new home-care workers
  • Support measures to cap the costs of care and will prioritise improving the quality of care services
  • Ring-fence the money councils get for carers’ breaks to ensure this money gets spent on carers

Welfare Benefits

  • Introduce a compulsory jobs guarantee, paid for by a Bank Bonus Tax
  • Abolish the Spare Bedroom Subsidy  
  • Ensure migrants will not be able to claim benefits until they have lived in the UK for at least two years
  • Extend free childcare from 15 to 25 hours for working parents of three and four-year-olds, and ensure all primary schools guarantee access to wraparound childcare from 8am to 6pm
  • Double paternity leave from two to four weeks and increase paternity pay by more than £100 a week

Climate Change, Energy & Flooding

  • Push for an ambitious target in Paris to get to the goal of net zero global emissions
  • Produce an ambitious adaptation programme, the new Infrastructure Commission will prioritise investment in flood prevention
  • Put climate change at the “heart of foreign policy”
  • Legal target to remove the carbon from Britain’s electricity supply by 2030
  • Green Investment Bank to be given additional powers so that it can invest in green businesses and technology
  • Create an Energy Security Board to plan and “deliver the energy mix Britain needs”

Business

  • Will reform corporate governance to "protect our leading firms from the pressure to put tomorrow’s share price before long-term growth potential"
  • Institutional investors will have “a duty to act in the best interests of ordinary savers” and will have to prioritise long-term growth over short-term profits for the companies in which they are investing
  • Require large companies to publish their gender pay gap

Employment

  • Tax rebates to businesses who sign up to paying the Living Wage in the first year of a Labour Government
  • Publicly listed companies will be required to report on whether or not they pay the Living Wage
  • Zero hour contracts - those who work regular hours for more than 12 weeks will have a right to a regular contract
  • Will amend the  employment tribunal fee system as part of wider reforms to “make sure that affordability is not a barrier to workers having proper access to justice”
  • Every firm getting a major government contract, and every large employer hiring skilled workers from outside the EU, will be required to offer apprenticeships

Infrastructure

  • Set up an independent National Infrastructure Commission
  • Continue to support the construction of High Speed Two
  • Following the Davies Review, will make a swift decision on expanding airport capacity in London and the South East
  • All parts of the country to benefit from high speed broadband by the end of the Parliament
  • Will establish a British Investment Bank

House Building

  • Make sure that at least 200,000 homes a year are built by 2020 by implementing the recommendations of the Lyons Review
  • Local authorities to have the power to give first call to first time buyers on new homes in some areas
  • Future Homes Fund  - by requiring that the money saved in Help to Buy ISAs be invested in increasing housing supply
  • Introduce greater transparency in the land market and give local authorities new ‘use it or lose it’ powers to encourage developers to build
  • Build more affordable homes by prioritising capital investment for housing and by reforming the council house financing system
  • Guarantee three-year tenancies with a ceiling on excessive rent rises

Europe

  • Retain membership of the EU
  • Reform the EU so that it works for Britain and a guarantee that no powers will be transferred to Brussels without an in/out referendum

Constitutional and Devolution

  • Set up a people-led Constitutional Convention to determine the future of UK’s governance
  • Replace the House of Lords with a Senate of the Nations and Regions
  • Pass an English Devolution Act, handing £30 billion of resources and powers to city and county regions
  • Devolve further powers to Scotland and Wales
  • Give 16 and 17-year-olds the vote
  • Create a statutory register of lobbyists
  • Ban MPs from holding paid directorships and consultancies

Last updated 01/07/2016