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Last week, the Labour Party launched its 2019 election manifesto – a spending spree of £83billion to bring in “real change”, which will be funded by raising taxes and extra borrowing. The Labour leader promised to take on “vested interests” in society as he set out a radical programme of nationalising utilities and the Royal Mail, investing in public services, and new rules for businesses and homeowners. Labour’s 105-page manifesto was described by Mr Corbyn as the most “radical and ambitious plan to transform our country in decades”.
The left-wing veteran claimed all his policies were fully costed, but this morning, the Institute for Fiscal Studies (IFS) identified several fiscal flaws in the party’s proposals.
During a talk organised by the IFS, the Institute’s deputy director Carl Emmerson said about Labour’s manifesto: “It excludes the cost of the revenue from windfall tax and Inclusive Ownership Fund.
“It also excludes the associated spending.
“It does not mention the costing of the WASPI compensation – a huge sum: £58billion.
“It also excludes the substantial long-run cost from not increasing state pension beyond 66 years old.
“That is a huge cost.”
According to Mr Emmerson, if the state pension age remains the same, in 50 years time, it would add a further £24billion a year.
Labour also failed to provide the costing for its nationalisation programme.
According to the ISF, the debt of these organisations will be around £150billion, but the cost of compensation to the companies owners is unknown.
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During the talk, the Conservative Party manifesto also attracted some criticism, as Mr Emmerson claimed the Tories made a few commitments, which are in need of funding.
The expert added: “In the Conservative manifesto there are a few things that look like firm commitments but there is just simply no funding for them.
“For example, the Northern Powerhouse Rail, the Midlands Hub, 6 new hospitals over 5 years, a Giga factory.
“£0.8billion provided for a £2billion further education estate upgrade.”
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