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Earners under £80k given Labour 'no tax rise' guarantee

John McDonnell said further details about the plan will be outlined in Labour's manifesto Credit: PA

Workers earning less than £80,000 a year are to be given a 'no tax rise' guarantee as part of a Labour election campaign pledge.

Shadow chancellor John McDonnell has said Labour's "personal tax guarantee" will mean "95% of workers" will be protected from increases, with only the top 5% of earners facing personal tax hikes to help pay for extra public services spending.

During a speech in London on Sunday, Mr McDonnell said: "If Labour is elected next month we will guarantee that for the next five years there will be no tax rises for income taxpayers earning less than £80,000 a year."

He also ruled out the possibility of his party raising VAT and National Insurance contributions over the course of the five-year parliament, due to end in 2022.

Labour's tax plan forms part of a bid to position itself as the party of low and middle-income workers as they fight with the Conservatives for the support of a social group who have faced stagnated wages since the financial crash.

Earlier, speaking on the BBC's Andrew Marr Show, Mr McDonnell said: "I want middle and lower earners to be assured that under Labour they will not be paying more taxes.

John McDonnell appeared on the Andrew Marr Show on Sunday. Credit: BBC/Andrew Marr Show

He added: "I've seen some of the ludicrous figures the Tories have been bandying about and I wanted them to have that assurance."

"They'll be no stealth taxes either."

Last week Theresa May also pledged that the Conservative government will not increase VAT if they win the General Election.

Labour says those earning under £80,000 will face no tax increase. Credit: Dominic Lipinski/PA

Speaking on ITVs Peston on Sunday, shadow foreign secretary Emily Thornberry said: "Most people in this country have not seen their wages go up in the last... who knows how long.

"When I talk to people on the doorstep they are having real difficulties making ends meet.

"It is a question of... asking those who have the broadest shoulders to help."

Mrs Thornberry also defended criticism over the £80,000 threshold under Labour's plans, with some arguing the amount falls just above that of the average salary for an MP (currently at £74,000).

She said: "Some MPs will [be caught by the tax increase] and some MPs won't... but on the whole, not."

But Conservative chief secretary to the Treasury David Gauke has already claimed that Labour will need to raise taxes in order to deliver its plans.

He said: "Jeremy Corbyn will have to raise taxes because his nonsensical economic ideas don't add up and he'll make a mess of the Brexit negotiations."

Emily Thornberry was questioned on how the £80,000 threshold was met. Credit: ITV/Peston on Sunday

But Conservative chief secretary to the Treasury David Gauke has already claimed that Labour will need to raise taxes in order to deliver its plans.

He said: "Jeremy Corbyn will have to raise taxes because his nonsensical economic ideas don't add up and he'll make a mess of the Brexit negotiations."

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