Labour’s Grand Promises: Can They Deliver or Is It Just More Political Hot Air?

Labour’s back in power, and the nation waits with bated breath to see if they’ll actually deliver on those shiny promises. You know, the usual suspects: shortening NHS waiting times, tackling anti-social behaviour, and hiring a small army of 6,500 teachers. Sounds lovely, right? But, of course, when it comes to the money, things get a tad murky.

Keir Starmer, our fearless leader, has already hinted that the first Budget under Labour will be a bit of a painful affair. In other words,

His words, not mine—but you get the gist.

Then there’s Chancellor Rachel Reeves, who’s apparently been on a treasure hunt and unearthed a whopping £22 billion of unfunded spending from the previous lot. Naturally, she’s ditched a few of their plans, but what does Labour have up its sleeve for us?

Capital Gains Tax

Unlike the Tories, Labour hasn’t promised to keep capital gains untouched. Starmer has assured us he won’t slap it on your first home, but if you’ve got a second home, valuable assets, or fancy yourself a bit of a landlord, you might want to keep an eye on this one as we think its going to be in line with income taxes meaning a top rate of 45%!

Inheritance Tax

Oh, the joys of passing on wealth, only for it to be possibly nibbled away by the taxman. Rumour has it Labour might be eyeing those family inheritances. A leaked chat suggests they’re considering this as a way to “redistribute wealth” and tackle that tricky “intergenerational inequality” problem. Charming.

Pension Tax

Labour’s also been a bit cagey on pensions. While they’re sticking with the state pension triple lock, which should keep pensioners’ pockets a tad fuller, the fear lingers that they might fiddle with the generous tax perks that come with saving for retirement. And let’s not forget the murmurs about possibly slapping inheritance tax on pensions. Nice, isn’t it?

Savings Tax

If you’ve been diligently tucking money away in an ISA, beware. Some think tanks have suggested Labour might cap the amount you can save tax-free. Meanwhile, frozen tax thresholds could drag more people into higher tax brackets, meaning more of us might find ourselves paying tax on our savings.

Council Tax

And then there’s council tax. Labour’s hinted they might give the whole system a good shake, possibly even revisiting those ancient property bands. Wales is already set for a re-evaluation, so why not England too? Don’t be surprised if your bill creeps up as a result.

The First Labour Budget

Mark your calendars for October 30th when Rachel Reeves will present the first Budget. They’ve promised to include a forecast from the Office for Budget Responsibility, unlike a certain Liz Truss back in the day. It’ll be interesting to see how Labour plans to fund all their promises.

What’s Labour Cutting?

As expected, some things had to go to make room for new plans. Winter Fuel Payments will now be reserved for those on specific benefits, meaning about 90% of pensioners will miss out. The adult social care reforms the Tories had planned? Gone. And the Advanced British Standard qualification? That’s been binned too.

What’s Labour Promised?

Labour has committed to a few goodies too. Public sector salaries are set to rise by an average of 5.5%, costing a cool £9 billion a year. They’re also planning to scrap zero-hour contracts, boost the minimum wage, expand childcare, and even introduce free breakfast clubs in primary schools. All lovely stuff, but one does wonder where the money will come from.

But Can They Afford It All?

That’s the million-pound question, isn’t it? Experts are already raising eyebrows, suggesting Labour might struggle to keep everything on track. With potential tax hikes lurking around the corner, it seems we’ll have to wait and see if Labour’s economic plan holds water.

So, there you have it—Labour’s grand plans, wrapped up in a neat little package. Time will tell if they can deliver on their promises or if it’s all just more political hot air. Fingers crossed, eh?