UKIP claim to be on the side of working people, but on the two key issues that will define the election – the NHS and living standards – UKIP are more Tory than the Tories.

Analysis of UKIP’s tax plans show they are standing up for millionaires and the richest, not ordinary hardworking people, and are offering a tax cut worth more than £100,000 to more than 16,000 millionaires.

Analysis of UKIP health policy sows that they support increased privatisation and GP charging.

UKIP is a party of Tory money, Tory people and Tory policies.

Michael Dugher MP said:

“UKIP claim to be on the side of working people, but the truth is they’re more Tory than the Tories. UKIP is a party of Tory people and Tory money. Now they want to go even further than the Tories by giving another tax cut to millionaires.

“This multi-billion giveaway to the very richest at a time when families are struggling exposes Nigel Farage’s fraudulent claims to be a friend of hard-working families. Ex-Tory, ex-banker Nigel Farage is showing his true colours.

“Tory and UKIP policy platforms are merging: tax breaks for those at the top, working people left behind. Only Labour has a plan to raise living standards for all.”

Ends

Living standards

UKIP have revealed that their manifesto will remove the 45p rate so 40p becomes the higher rate. Cutting the higher rate would give a tax cut of over £100,000 to 16,000 millionaires.

This is further evidence of the Tory and UKIP merging over policy. George Osborne and David Cameron have repeatedly refused to rule out a further cut to the top rate and both the Tories and UKIP have both floated their support for a flat tax which. Both policies would, once again, benefit those at the top of the income scale.

NHS

UKIP health policy would introduce charges to see your GP, even deeper cuts to your NHS, increased privatisation.

UKIP’s tax plans: standing up for the wrong people

On the side of millionaires: cutting the higher rate to 40p

• Tim Aker, head of the party’s policy unit has said there will be no top rate above a top rate of 40p:

And the top rate? “Abolish it,” says Aker. Above the 40p rate, there will be “no further rates,” he says. “We are for flatter, simpler and lower taxes.”
Tim Aker, Prospect magazine, August 20, 2014
http://www.prospectmagazine.co.uk/opinions/exclusive-what-will-ukips-election-2015-manifesto-look-like

• The impact of a 5 per cent cut in the additional rate would benefit those at the very top, in particular millionaires. Labour’s analysis shows that this move would work out as an average tax cut of approximately £111,000 for 16,000 millionaires. See accompanying data for further information.

• This follows David Cameron and George Osborne giving the top one per cent of earners a £3 billion tax break – worth an average of £100,000 for those earning over £1 million by cutting the top rate from 50p to 45p.

• And both David Cameron and George Osborne have both repeatedly refusing to rule out a further cut to the top rate of tax:

Ed Miliband: He said that the 50p tax rate was a symbol of us all being in it together, and now it has gone. Can he now tell us whether he rules out cutting the top rate further to 40p?
The Prime Minister: The Chancellor set out yesterday exactly what our priorities are. We want to cut taxes for the lowest paid and for middle income people.
Hansard, 29 January 2014, Column 851-852

Edward Miliband: I am asking him a very simple question. Does he rule out reducing the top rate to 40p—yes or no?
The Prime Minister: The simple answer is that I have told him our priority: tax cuts for low earners, tax cuts for middle earners, freezing the council tax, freezing the fuel duty and helping people in our country.
Hansard, 29 January 2014, Column 851-852

Ed Balls: Let me ask the Chancellor about the one thing he has refused to talk about now for four days. He has delivered one massive tax cut for the richest 1 PER CENT earning more than £150,000, when everybody else is worse off. The Prime Minister and the Mayor of London are now saying that they want to cut the top rate of income tax again, to 40p. Is that really the Conservative party’s priority? If the Chancellor still believes that we are “all in this together”, why will he not stand at the Dispatch Box and rule out another top-rate tax cut from the Conservatives in the next Parliament? Come on, George: stand up and rule it out.
Mr Osborne: I will tell the right hon. Gentleman what the big tax cut was this Parliament: it was for working people through our increase in the personal allowance to £10,000.
Hansard, 28 January 2014, Column 759,


UKIP and the Tories back flat tax

• UKIP have previously supported flat tax

‘UKIP want to cut taxes for the wealthiest, while raising taxes for you and your family. They want a flat rate of income tax of 31 per cent, so millionaires would pay the same rate of tax as working families.’
“The flat tax will merge existing income tax bands and Employees’ National Insurance contributions into a single rate.” UKIP Manifesto 2010

• The Tories have supported a flat tax

Oliver Letwin: “And I’d draw your attention to the fact that in 2010, indeed now, we were not in a position to take a large fiscal cut. There may come a time when the situation is different and that discussion [flat tax] will no doubt open up at that point.”
Oliver Letwin, 1 July 2014, Politeia Summer Address, ‘The Long-Term Economic Plan’

George Osborne has previously said that the flat tax is “a very exciting idea”.
George Osborne, Radio Four ‘Today’, 7th September 2005

George Osborne specifically talked of the merits of a flat tax system once the personal allowance threshold had been raised: “You have a single rate in a flat tax system, however, you also tend to have a very large personal allowance so for example, the first £10,000 of your income could tax free. So if you’re on £20,000 that means half your income is tax free, where of course if you’re on £100,000 then only a 1/10th of your income is tax free.”
George Osborne, Radio Four ‘Today’, 7th September 2005

Boris Johnson has said a flat tax could “work brilliantly”.
The Mirror, 16 March 2013

Numerous Tory MPs have called for a flat tax, including Steve Baker[1] and Edward Leigh[2]. Greg Hands MP championed flat tax systems as member of ‘Conservative Way Forward’[3]. David Davis is also reported to be a supporter of the policy[4].

• Flat Tax implementation would be hugely regressive. The IFS calculate that a system which maintained the distinction between NICs and income tax with a tax free allowance of £10,000 the rate would have to be set at 31 PERE CENT to be broadly fiscally neutral[5]. This would amount to an increase in income taxes for the 24 million taxpayers who are basic rate payers[6], whilst at the same time offering a huge tax cut to the very richest. For example, someone earning £30,000 would see their income tax increase by £2,200 at the same time as a person earning a million pounds a year would see a tax cut of over £120,000.

Only Labour has fair tax plans

Labour has set out plans to cut tax for people on low and middle incomes and get the deficit down in a fair way:

• Introduce a new 10p starting rate of tax to help 24 million people on low and middle incomes

• Reverse David Cameron’s £3 billion tax break for the top one per cent of earners and tax houses worth over £2 million

• In Europe, tackle tax avoidance with greater transparency so we can see who has paid what tax