The Labour Party is set to unveil ambitious Income Tax plans which would see almost one million more British workers pulled into a higher tax bracket.
According to reports, the Party has confirmed that it wants to raise an additional £4.5bn from workers who are earning £80,000 or more – which would mean effectively halving the 45p top rate of Income Tax.
Under existing rules, only approximately 330,000 Britons who earn £150,000 or more pay Income Tax at the top rate.
If the threshold is ‘halved’ to £80,000, it is estimated that almost one million more British workers would be forced to pay the 45p rate.
Those affected – which would include public sector professionals such as doctors, head teachers and police officers – could expect to see their tax bills rise by an average of £3,750 each under the plans, according to reports.
Labour has said that the move would help to generate an additional £4.5bn that would go towards funding the NHS.
The Party has also confirmed that, if elected, it would also increase corporation tax by more than 40 per cent and reverse recent cuts to Inheritance Tax (IHT) – which the party has previously described as “Conservative giveaways”.
Labour leader Jeremy Corbyn is expected to officially set out his plan for Government on Tuesday 16 May, in a speech addressing the North of England.