Parties Under the Microscope: Taxation

Manifestos and tax

This blog is the first in our Parties Under the Microscope series, where we’ll be taking a comparative view of some of the nation’s most hotly contested issues in the run-up to the General Election. The impending election will be a hugely influential factor in how the future looks for all of us. In this series, we aim to lay out the facts without bias, providing a comparison on the manifestos of each party. Here at AGL Wealth, we have a culture of accountability and communication. It is our hope that these blogs accomplish both of these aims and help you make the best possible decision for you in next week’s election. Whatever you do, make sure that you have your say.

Now, without further preamble, we’ll kick off the series with our first big issue; taxation. Taxation is a hugely divisive issue amongst the parties. Here, we’ll be giving an overview of the standpoints of the Conservatives, Labour, Lib Dems and the SNP. So, running in alphabetical order, we’ll begin with our current majority, the Conservatives.

The Conservative Party

Before the publication of the party’s manifesto, many had speculated that it would include a rise in taxation. Since its publication, the PM has spoken out, stating that ‘the Conservatives will continue to be a lower tax party.’

The Conservative Manifesto has stated that ‘paying your fair share of tax is the price of living in a civilised democracy’. However, they have added a caveat being that ‘politicians should never forget that taxes are levied on businesses that employ people and individuals who work hard and face tough decisions about how they spend their money.’ With this in mind, the Tories have pledged to carry out the following if elected into office again:

The Labour Party

The Labour Manifesto carries the strapline ‘for the many, not the few’. The taxation pledges contained within the document seem to follow suit. If elected, it looks like the few could indeed be in for some very sizable tax bills. Jeremy Corbyn and his party have made pledges to fulfil the following, should the party be elected into power:

The Liberal Democrats

The Lib Dems made Brexit the central focus of their manifesto, a topic which we will discuss in detail in this series. However, taxation pledges did make an appearance in the manifesto, with pledges to reverse many Conservative-made regulations that have taken place in recent years. The party stated that they would accomplish the following:

The Scottish National Party

As many expected, the SNP Manifesto detailed plans to launch a second Scottish Independence Referendum at the end of the Brexit process. The party also put forward pledges to:

 

It was recently announced that the UK now sits dead last in the G7 update on the first quarter of 2017. Unlike top runner Canada whose GDP grew by 0.9% in Q1 2017, Britain’s GDP grew by just 0.2%. With this in mind, all parties will be looking for a way to galvanise the UK economy and evaluate taxation in a way that bolsters the thriving of UK businesses. However, as you can see from the above comparison, the parties have some very different approaches to accomplishing this.

The General Election brings with it a time of uncertainty. If you are concerned about the stability of your financial circumstances or the viability of your investments in light of possible change, don’t hesitate to get in touch with one of our expert advisors.