Fatcat bankers will have just two years to enjoy their hefty Tory bonuses... until Keir Starmer becomes PM.
He declares that he will also order Labour MPs to vote against the abolition of the top 45% income tax rate for £150,000 earners.
But the 31 million taxpayers who saw a penny lopped off their 20% basic rate in Kwasi Kwarteng ’s budget on Friday will be allowed to keep that rebate after the next general election.
In his first national newspaper interview since Liz Truss became PM, Sir Keir said: “Removing the cap on bankers’ bonuses when people are really struggling to pay their bills shows the Tories are absolutely tone deaf to what so many people are going through.
“And scrapping the 45% tax rate is wrong in the middle of a cost-of-living crisis. We wouldn’t be doing it. The Tories presided over stagnation for 12 years and they have done nothing to break that cycle.”
Sir Keir is appalled that a £1million earner is being handed more than £40,000 back when so many ordinary workers do not know where the next pound is coming from. The tax changes come in next April.
Meanwhile, thanks to Ms Truss, bankers will no longer have bonuses capped at 200% of salary – so the sky is the limit.
Sir Keir cautioned he cannot make final tax decisions until he is PM, but Labour’s direction of travel is clear. Shadow Health Secretary Wes Streeting said yesterday he will protect the £314million of public money going into care homes by clamping down on bosses who avoid tax.
And deputy leader Angela Rayner will promise today to stop handing £40billon in contracts to firms with tax haven links – which loses the Treasury £17billion in corporation tax revenue.
Sir Keir is in Liverpool today for his third Labour conference as leader and will put the party on an election footing under the slogan “A greener, fairer Britain”.
At his first conference he told delegates why Labour needed to change, and last year he told them about himself. Now it is time to get down to business.
On tackling climate change, he is in lockstep with our new King – but with one big difference. Charles thinks economic growth damages the environment, while the Labour leader sees it as a way to create a more prosperous Britain – and that will be the centrepiece of his keynote speech on Tuesday.
He said: “The climate crisis is the biggest opportunity this country has had for decades to get ahead on the next generation of jobs. The mission is an economy which works for working people while dealing with our obligations on the climate crisis.
“I’m talking about the next generation of jobs. Green for me equals jobs for the future. It’s not being green for the sake of it. It’s a reflection of my working class upbringing and what a skilled, secure job means for a family. And I’m a father and I have an obligation to my children and to tackle the climate crisis.”
That means setting a target to remove all fossil fuels from Britain’s power system by 2030 and making Britain a net exporter of clean energy – five years ahead of current plans.
And there will be a massive expansion of renewables including onshore and offshore wind, solar, hydrogen and nuclear power, which could add up to 700,000 new jobs.
Sir Keir said: “We are determined to fight the election on growth and I will set out my mission to do that for all parts of the UK. The cost-of-living crisis, the NHS on its knees and law and order out of control are the immediate issues which have to be dealt with. The climate crisis gives us the opportunity to grow the economy for working people.”
Sir Keir is criticised for not having policies even though he is brimming over with them. But he accepts he may have to shout about them more. On that note, he tweeted last night: “Tory casino economics is gambling the mortgages and finances of every family in the country. Labour will secure growth for working people, that benefits all communities.”
He says his government would reform the House of Lords, clean up politics and put power into communities nationwide. A Resolution Foundation report yesterday revealed that budget tax changes will give those in London and the South East an average £1,600 but only £500 to those in Wales, the North East and Yorkshire.
Under Labour, private schools would lose charitable status and the £1.7billion saved would go to hiring teachers in state education. Childcare would become more affordable, so parents would not have to give up work to look after kids. And of the Irish protocol row, which is preventing a trade deal with the US, Sir Keir said: “We would make it work better, not tear it up.”
He would deal with migration by speeding up asylum applications and opening safe routes.
Shadow Home Secretary Yvette Cooper will hire 13,000 more neighbourhood police and new rape courts will fast track justice for victims.
The Tories have nicked the energy price freeze policy – though borrowing £60billion to do it gave Sir Keir a furrowed brow. He added: “We said freeze prices and the PM did. But the question is how to pay for it. We’d put the cost on the oil and gas companies. They are putting it on borrowing.”
Sir Keir is not planning on going easy on Liz Truss. He said: “My starting point with everyone is respect. But politically I couldn’t disagree with her more. There is a massive divide between us.”
While on the subject, the Tories have had three female leaders. What about Labour?
Sir Keir said: “Do we need a woman leader in the future? Yes. The party acknowledges that. I want to win the next election and be the next Prime Minister. But I’ve no doubt a future leader will be a woman.”
How Tory tax plan helps the rich
A fatcat earning £2.5million is £117,000 better off thanks to Kwasi Karteng – enough to pay the extra taxes faced by 1,000 nurses. Lib Dem analysis shows a teacher starting on £25,700 will see taxes rise by £121 next year once the freeze in thresholds is included. An NHS nurse, meanwhile, will face a £107 rise.
Furious Lib Dem leader Ed Davey said: “Liz Truss and the Conservatives are only cutting taxes for the few, while millions of people will pay more.”
Energy prices 'could get even worse'
Labour today claimed the plunging pound could cost Britain up to £7billion a year more in energy costs because imports make up 38% of UK power needs.
Shadow Treasury Secretary Pat McFadden said: “This Tory government has lost control of the economy.”
Labour's neighbourhood cops vow
A Labour government will pledge 13,000 extra neighbourhood police – at least 15 extra officers, PCSOs or specials for every constituency.
Yvette Cooper plans to reverse 30% cuts in neighbourhood policing since 2015, if Labour wins the next election.
The Shadow Home Secretary said: “People just don’t see police on the streets any more. This can’t go on.”
Crimes where anyone is caught, charged or given a community penalty are down by almost two-thirds since 2015. And the number of people saying they never see police on foot patrol has almost doubled since 2010.
More support for rape victims
Labour will unveil plans to establish specialist rape courtrooms to try cases. They will be placed in 80 existing crown courts to speed up justice and provide dedicated support to victims.
Shadow Justice Minister Steve Reed said: “Criminals are let off while victims are let down.”
Independent sexual violence advisers would be on hand to ensure every victim is treated with care and sensitivity. They currently face more than 1,000 days of delays from the report of the offence to completion at court – and only one in 100 suspected rapists is being prosecuted.
Mayor Sadiq highlights online racists
Researchers claim Twitter is failing to remove 96% of racialised tweets targeting Sadiq Khan – despite complaints from the London mayor.
The Center for Countering Digital Hate (CCDH) says Mr Khan has been subject to 4,250 inappropriate tweets, which received 6.7million views.
Labour MP Dawn Butler said: “Sadiq is a Londoner through and through and yet the abuse he gets online is disgusting. It puts others off from entering politics at a time when we need diversity more than ever.”
CCDH holds social media firms to account over hateful or dangerous content.
