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General election 2019: Corbyn concedes lower earners could pay more tax | |
(about 3 hours later) | |
Jeremy Corbyn has admitted those on lower incomes could pay more tax under a future Labour government. | Jeremy Corbyn has admitted those on lower incomes could pay more tax under a future Labour government. |
The Labour leader had previously insisted only the richest 5% of taxpayers, those earning about £80,000 a year or more, would face tax rises. | The Labour leader had previously insisted only the richest 5% of taxpayers, those earning about £80,000 a year or more, would face tax rises. |
But he was forced to concede a plan to scrap a tax break for married couples would impact those earning less. | But he was forced to concede a plan to scrap a tax break for married couples would impact those earning less. |
Mr Corbyn argued in a BBC interview that those affected would benefit from a higher living wage. | Mr Corbyn argued in a BBC interview that those affected would benefit from a higher living wage. |
"They will also be getting improvement in free nursery provision for two to four-year-olds," he added. | "They will also be getting improvement in free nursery provision for two to four-year-olds," he added. |
Challenged on the policy in an interview with Andrew Neil on Tuesday night, Mr Corbyn conceded couples in receipt of the marriage allowance would no longer receive a reduction in tax if he wins power next month. | Challenged on the policy in an interview with Andrew Neil on Tuesday night, Mr Corbyn conceded couples in receipt of the marriage allowance would no longer receive a reduction in tax if he wins power next month. |
"They won't get the advantage, it's actually taking away £250," he said. | "They won't get the advantage, it's actually taking away £250," he said. |
The tax break was brought in by David Cameron in 2015 to promote marriage, with stay-at-home mothers and women who work part-time expected to be the main winners. | The tax break was brought in by David Cameron in 2015 to promote marriage, with stay-at-home mothers and women who work part-time expected to be the main winners. |
It is available to married couples and civil partners with a combined income of under £62,500 in England, Wales and Northern Ireland, and up to £43,430 in Scotland. | It is available to married couples and civil partners with a combined income of under £62,500 in England, Wales and Northern Ireland, and up to £43,430 in Scotland. |
In January 2019, the government said an estimated 4.2 million couples were eligible for the tax break - with a total of 3.2 million claiming it since it was introduced. | In January 2019, the government said an estimated 4.2 million couples were eligible for the tax break - with a total of 3.2 million claiming it since it was introduced. |
When Labour published its general election manifesto last week it said there would be no increases in VAT, income tax or national insurance for 95% of taxpayers, if Labour wins power on 12 December. | When Labour published its general election manifesto last week it said there would be no increases in VAT, income tax or national insurance for 95% of taxpayers, if Labour wins power on 12 December. |
The party is insisting that that is still the case and only a "limited number" of people would lose the allowance. | |
The pledge prompted a heated exchange on the BBC's Question Time programme, which led to questions about whether earning £80,000 put someone in the top 5% of earners. | The pledge prompted a heated exchange on the BBC's Question Time programme, which led to questions about whether earning £80,000 put someone in the top 5% of earners. |
What is the marriage allowance? | What is the marriage allowance? |
The marriage allowance is a tax relief for married couples and civil partners that allows one partner to transfer part of their personal allowance to the other. | The marriage allowance is a tax relief for married couples and civil partners that allows one partner to transfer part of their personal allowance to the other. |
To benefit as a couple, the lower earner must normally have an income below their personal allowance, which is usually £12,500. | To benefit as a couple, the lower earner must normally have an income below their personal allowance, which is usually £12,500. |
It reduces the couple's tax bill by up to £250 a year. | It reduces the couple's tax bill by up to £250 a year. |
Scrapping the marriage allowance was not in Labour's manifesto, but was included in an accompanying document, the so-called grey book, setting out how the party plans to pay for its spending commitments. | Scrapping the marriage allowance was not in Labour's manifesto, but was included in an accompanying document, the so-called grey book, setting out how the party plans to pay for its spending commitments. |
In the interview with Andrew Neil, Mr Corbyn repeated that only people who earned more than £80,000 a year would see a tax increase. | In the interview with Andrew Neil, Mr Corbyn repeated that only people who earned more than £80,000 a year would see a tax increase. |
He said scrapping the marriage allowance would be a "step towards equality" because "those people that are cohabiting in a very happy family atmosphere and bringing up children do not get the benefit of that". | He said scrapping the marriage allowance would be a "step towards equality" because "those people that are cohabiting in a very happy family atmosphere and bringing up children do not get the benefit of that". |
The half-hour interview also saw Mr Corbyn struggle to explain how Labour's pledge to restore pensions to women born in the 1950s would be paid. | The half-hour interview also saw Mr Corbyn struggle to explain how Labour's pledge to restore pensions to women born in the 1950s would be paid. |
The policy's estimated £58bn cost over five years would be paid for through government reserves and, if necessary, borrowing, "over some years". | The policy's estimated £58bn cost over five years would be paid for through government reserves and, if necessary, borrowing, "over some years". |
He conceded that there were not sufficient funds in the government's reserves to cover the bill, but insisted the women deserved to be repaid. | He conceded that there were not sufficient funds in the government's reserves to cover the bill, but insisted the women deserved to be repaid. |
"We will make sure they are compensated," he said. | "We will make sure they are compensated," he said. |
Mr Corbyn also declined to apologise to the UK Jewish community after the Chief Rabbi Ephraim Mirvis claimed the "poison" of anti-Semitism within Labour was "sanctioned from the very top". | Mr Corbyn also declined to apologise to the UK Jewish community after the Chief Rabbi Ephraim Mirvis claimed the "poison" of anti-Semitism within Labour was "sanctioned from the very top". |
The Conservatives said the Labour leader wasn't able to answer how he would pay for his "fantasy plans for the country", which risked taxpayers "footing the bill". | |
Andrew Neil will be speaking to other party leaders during the election campaign. | Andrew Neil will be speaking to other party leaders during the election campaign. |