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Fri, 14 June 2024

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John McDonnell claims IMF support for Labour tax plans

John Ashmore

1 min read

John McDonnell has seized on new IMF research which claims governments can increase taxes on the rich without hurting growth.


In its six-monthly fiscal monitor, the influential organisation said that higher taxes on the top 1% of earners would not hurt Western economies. 

At the recent general election Labour pledged only to raise taxes on corporations and the top 5% of earners.

They called for a new 45% rate for those earning £80,000 or more per year and £50% for those on more than £123,000 a year.

The Tories claimed the opposition's policies amounted to a "tax bombshell" which would hit ordinary families in the pocket, with a £45bn gap between their tax revenue and spending commitments. 

But the IMF made clear there was "no empirical evidence" to suggest that taxing the richest would hinder growth.

Mr McDonnell said the Washington-based body had effectively backed Labour's tax plans.

“The IMF support the argument we made in the General Election for a fairer tax system," he said. 

"There is no evidence to support those who scaremonger about the effects of making the rich pay fairer tax.”

“Not only have the Tories slashed the top rate of tax, they still plan billions in tax giveaways to the super rich and big corporations over this parliament.”

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