The opposition Labour party has started to reveal the policies on which it will fight the general election in May 2015.
At the Labour Party’s annual conference in Brighton, Labour Leader Ed Milliband has saidthat a Labour government would abolish the bedroom tax:
“The bedroom tax – not what the Tories call the spare room subsidy – the bedroom tax: a symbol of an out of touch, uncaring Tory government that stands up for the privileged few – but never for you. So we will scrap that tax.”
Milliband told the BBC that the change would be funded by ending “boardroom tax loopholes” allowed by the current government, in particular a tax break for hedge funds and the Treasury’s new shares-for-rights scheme.
Shadow Chancellor Ed Balls today reiterated that commitment, but said Labour would carry out a zero-based review of spending to identify savings that will allow resources to be switched to Labour’s priorities. This would mean that the winter fuel allowance would be stopped for the richest five per cent of pensioners, and that Labour would keep the benefits cap, but “make sure it properly reflects local housing costs.”
Balls also announced that Labour would introduce a mansion tax on properties worth over £2m to pay for a lower 10p starting rate of tax.
Liam Byrne, Shadow Secretary of State for Work and Pensions, said thatLabour would devolve control over back-to-work schemes to local authorities, and would guarantee a job for those out of work for two years, but claimants would be expected to take that job if they were fit to work.
Labour’s aim would be to ‘maximise potential of earnings’. “That why we need Universal Credit to work” he said, announcing Labour’s ‘Universal Credit Rescue Committee’ whose work would be be led by Kieran Quinn, leader of Tameside Council, the first Universal Credit pathfinder.