Boris Johnson to promise a ‘triple tax lock’ as Labour pledges another £58bn
Boris Johnson will today pledge that a Conservative government will not raise income tax, national insurance or VAT in a bid to “put more money back in peoples pockets”.
Johnson will make the announcement at the Tories’ manifesto launch today, where he will also commit to spend £3bn on a National Skills Fund to help adults undertake vocational retraining, £2bn to fill pot holes and £1bn to childcare, along with confirming an increase in the national insurance threshold.
Read more: Boris Johnson hints at plans to hike national insurance threshold
The Prime Minister will hammer home his “get Brexit done” messaging as a part of the launch, describing his Brexit deal as a “Christmas present” to the nation.
He is expected to say: “Imagine the relief the whole nation will feel if we do this – if a Conservative majority is returned on 12 December so we can get Brexit done.”
However, the launch may be overshadowed by John McDonnell’s announcement that Labour would spend a whopping £58bn to compensate the WASPI women group if elected.
An estimated 3.7m women born between 1950 and 1960, who planned on retiring at 60 before the state pension age was increased, will receive £100 per week of income lost.
The average woman will receive £15,000, while some will receive more than £31,000.
Shadow chancellor John McDonnell told the Sunday Times that the change in the state pension was a “historic injustice” and that some women affected were “suffering real hardship”.
McDonnell added that the £58bn cost – spread out to £11.5bn a year over five years – would be funded by borrowing.
Steve Webb, director of policy at insurance firm Royal London, said this meant the cost will be borne by the next generation.
“If it’s paid for by borrowing, then it means that the next generation will have to pay for it,” he said.
“It’s saying that ‘we’re using your dime to pay for it’, and it seems unfair as they will already have to pay a lot of taxes in the future as this generation gets older.”
Webb added that some women were aware of the change to the pension age at the time and adjusted their plans.
“The European Court required the change and some women knew about it and acted,” he said.
“It seems odd to then compensate everyone in a broad brush way.”
Johnson was asked if he would commit to a similar spending pledge for the WASPI women at Friday’s BBC Question Time for party leaders.
However, he said he could not commit to the spending pledge due to the high costs involved.
Read more: Labour pledges 20 per cent property tax for foreign buyers
Speaking to the BBC’s The Marr Show, Michael Gove said the Tories are “naturally sympathetic” to the women born between 1950 and 1960.
“We’ve provided additional money to smooth the transition, which previous governments have acknowledged needs to be made when we’re equalising the pension age,” he said.