General election 2024: ‘Conspiracy of silence’ from Tories and Labour over tax plans in manifestos, thinktank IFS says
Voters have been left in the dark over how the major parties will be able to fund their spending commitments, a respected thinktank has said, offering just “thin gruel”.
The Institute for Fiscal Studies (IFS) took further aim at what it described as a “conspiracy of silence” from both the Conservatives and Labour on how they could meet the challenges they identify, such as reducing NHS waiting lists.
Launching its report on the crucial documents, IFS director Paul Johnson warned that spending on many public services would likely need to be cut over the next parliament unless government debt was to rise or taxes increased further.
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He pointed to pressure from a 60-year high in government debt levels at a time of a near-record tax burden.
Much of the blame for this was a £50bn a year increase in debt interest spending relative to forecasts, he explained, and a growing welfare budget in the wake of the COVID pandemic and cost of living crisis that followed Russia’s invasion of Ukraine.
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Labour manifesto versus the rest
“We have rising health spending, a defence budget which for the first time in decades will likely grow rather than shrink, and the reality of demographic change and the need to transition to net zero,” Mr Johnson said.
“Add in low growth and the after-effects of the pandemic and energy price crisis and you have a toxic mix indeed when it comes to the public finances.”
“These raw facts are largely ignored by the two main parties in their manifestos”, he declared, describing the information presented to voters as a “knowledge vacuum”.
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The main verdict on tax
“In line with their unwillingness to face up to the real challenges, neither main party makes any serious new proposals to increase taxes”, Mr Johnson said.
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What is in the Conservative Party manifesto?
“Consistent with their conspiracy of silence, both are keeping entirely silent about their commitment to a £10bn a year tax rise through a further three years of freezes to personal tax allowances and thresholds.
“Both have tied their hands on income tax, NICs, VAT and corporation tax. The Conservatives have a long list of other tax rises, and reforms, that they wouldn’t do. Labour have ruled out more tax options since the publication of the manifestos.
“Taken at face value, Labour’s promise of no tax increases on working people” rules out essentially all tax rises. There is no tax paid exclusively by those who don’t work. Who knows what this pledge is really supposed to mean,” he concluded.
What about the other parties?
The IFS said the Liberal Democrats had bigger tax and spend policies than Labour or the Conservatives.
It also determined that Reform UK and the Greens offered much bigger numbers but declared that what they propose is “wholly unattainable”, helping to “poison the entire political debate”.
Mr Johnson concluded: “The choices in front of us are hard. High taxes, high debt, struggling public services, make them so.
“Pressures from health, defence, welfare, ageing will not make them easier. That is not a reason to hide the choices or to duck them. Quite the reverse. Yet hidden and ducked they have been.”
Former anti-corruption minister Tulip Siddiq is set to face trial later this month over corruption allegations in Bangladesh.
Ms Siddiq resigned from her ministerial role earlier this year over accusations she illegally received a plot of land in a new high-end development on the outskirts of Dhaka, Bangladesh’s capital, from her aunt, Sheikh Hasina, who was ousted as prime minister last year.
Bangladesh’s Anti-Corruption Commission (ACC) claims the Labour MP received a 7,200sq ft plot in the diplomatic zone through “abuse of power and influence”.
The ACC confirmed Ms Siddiq’s case is due to be heard in Bangladesh on 11 August.
A top official at the Commission told Sky News that if the Labour MP refuses to attend court on this date, a trial will be held in her absence.
It is understood she will not be present.
Ms Siddiq’s lawyers have denied the allegations against her.
Tulip Siddiq with Sheikh Hasina in 2009. Pic: Reuters
Sky News understands an article published on Thursday morning saying the Labour MP for Hampstead and Highgate will face trial in Bangladesh over the allegations is the first Ms Siddiq had heard of the court date.
A source close to Ms Siddiq told Sky News her lawyer was in court every day last week to request information, but was denied it.
An ACC official said Ms Siddiq’s lawyer “was absent in the court” when the court order was issued on Thursday.
They added that the order relates to three cases involving Ms Siddiq and others – all regarding corruption around the Purbachal new town project.
The Commission will continue to take steps “to ensure justice against the perpetrators”, the official said.
Ms Siddiq’s lawyer said: “For nearly a year now, the Bangladesh authorities have been making false allegations against Tulip Siddiq.
“Ms Siddiq has not been contacted or received any official communication from the court and does not and has never owned any plot of land in Purbachal.
“This longstanding politically motivated smear campaign has included repeated briefings to the media, a refusal to respond to formal legal correspondence, and a failure to seek any meeting with or question Ms Siddiq during the recent visit by the Anti-Corruption Commission (ACC) to the United Kingdom.
“Such conduct is wholly incompatible with the standards of a fair, lawful, and credible investigation.
“In light of these facts, it is now time for the Chief Adviser and the ACC to end this baseless and defamatory effort to damage Ms Siddiq’s reputation and obstruct her work in public service.”
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Bangladesh issues arrest warrant for Tulip Siddiq – as she denies claims
Tulip Siddiq: ‘My lawyers are ready’ for questions about corruption claims
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‘Leave me alone’: MP tells Bangladeshi authorities
In June, Ms Siddiq accused Bangladesh’s interim leader, Nobel Prize-winning economist Professor Muhammad Yunus, of conducting an “orchestrated campaign” to damage her reputation and “interfere with UK politics”.
In a legal letter seen by Sky News in June, the MP also said comments made by Professor Yunus in a Sky News interview have prejudiced her right to a fair investigation, meaning the corruption inquiries should be dropped.
The interim leader, who took over after Ms Hasina was ousted last year following violent protests, said Ms Siddiq “has so many (sic) wealth left behind here” and “should be made responsible”.
Sheikh Hasina fled Bangladesh after being accused of rigging elections and interfering with the judicial system. Pic: AP/ Yomiuri Shimbun
Professor Yunus’ press secretary said he and the ACC “has no reason and scope to interfere in UK politics”.
“The Anti-Corruption Commission relies not on hearsay but on documentary evidence and witness testimony,” they said.
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