Remember this classic election poster?  Labour’s tax bombshell.  The Sunday Telegraph reveals that according to Treasury Documents Labour, if they win the next election, are planning to increase income tax by 3p in the pound. The natural inclination of the Socialists returns.  Raising taxes on hard working families.  The truth is out.  Labour return to type!

The Treasury documents show a  big rise in projected income tax receipts between now and 2011-12, as well as in following years.  This points to Labour raising taxes immediately if they won the next election!  What a scary, nightmare scenario!

The Sunday Telegraph states that: “….Treasury tables showing the anticipated income tax receipts in the years up to 2013-14. The total falls to £140.5 billion this year, which most experts expect will include the worst of the recession, before rising slightly to £144.7 billion in 2010-11, which covers the period when the next election is expected to be held. In 2011-12, however, the projected income tax “take” leaps to £161.6 billion. The Tories said that rise could not be accounted for by the planned 50p tax rate for those on incomes of more than £150,000, which would raise just under £2 billion in 2011-12, or by people returning to work as the economy started to recover. They said the £14.8 billion “unexplained” increase in receipts would be the equivalent of putting 3p on the standard rate of income tax. The tables showed that receipts would rise still further in subsequent years, ending up at £191.8 billion in 2013-14 — a rise of 32.55 per cent from 2010-11. Further rises could lead to the amount taken through the tax increasing by almost a third by 2013-14, the Tories said. They claimed the rise in receipts could not be accounted for by people returning to work and the introduction of the new 50p top-rate tax on earnings of more than £150,000 a year”.

This boils down to the crux of the debate at the next election.  Labour will raise taxes.  Conservatives will cut spending, where prudent to do so.

The more we learn of Labour’s economic strategy, the better educated the electorate will become.  This election manifesto may well become the ‘longest suicide note in history’ for Labour. 

The more that is revealed the more interesting Labour’s Conference will be.  If poll ratings continue to decline, Gordon Brown may not survive his own Conference.  That’s unless he is, as rumours persist, is planning to announce that he is standing down as Prime Minister in his Conference speech…..?