Most are unaware of what policies the Labour Party will seek implement upon taking up office.
Below are a list of policies which could be put into place in Labour's first Budget in order to boost economic growth, stimulate the economy and enhance quality of living amongst all UK citizens.
Abolish DWP spending and introduce a ‘flat rate’ payment of £1,500 per month for all over 16 – total estimated cost: £900 billion per year.
Introduce a ‘spending card’ whereby £750.00 per month of the ‘flat rate’ payment will automatically be placed onto a card with which individuals have 30 days to use the full balance of otherwise the rest of the payment will be clawed back.
Introduce a 100% rate of VAT for any payments made via the new ‘spending card’ – this measure at full capacity would help claw back £225 billion in taxation and boost overall consumer spending.
Abolish National Insurance and Income Tax and introduce a one-tiered system of ‘taxed’ income – equal to 50% per £1 earned – this means a worker who earns £11.87 per hour, or £1,900 per month, working 40 hours, will pay £950.00 per month in taxation, although with the additional £750.00 per month in terms of the ‘flat rate’ payment and the 30 day ‘spending card’, the total net income would effectively be £2,450 per month.
If the employment rate decreased from 33 million to 15 million, the combination of the new tax system, even if the average wage dropped to £25,000 per year, would be £190 billion.
Increase the ‘overall’ rate of VAT from 20% to 100% for all goods, including for exempted items.
Seek to relax ‘import’ rules concerning goods coming to the UK – liberalise rules to ensure at least 95% of all ‘consumable’ goods and other products are imported to the UK – Introduce 0% rates of import tariffs for all goods and reduce all customs paperwork to nil.
Immediately seek to finance, over a period of 50 years, 100% of all UK housing stock at a fixed rate of 4.35% - this measure would bring all UK housing stock into public ownership and cost £300 billion per year – after this measure is in place, introduce a ‘property tax’ of £85 per month, or £1,020 per year to help offset the debt and reduce household bills – this measure would bring in nearly £33 billion a year of revenue.
Introduce a ‘membership’ fee of £350.00 per month for all 50 million adults in order to manage importing of foods and drink into the UK - introduce ‘collection’ points for all adults to access and receive one week’s worth of food/drink based on what they pick the week before. Based on the cost of 3 meals per day, per person, costing £5.25 (wholesale), this measure for all adults would generate a total revenue of £220 billion a year and cost an estimated £100 billion per year, resulting in a net cost of £120 billion – additionally, based on one member of staff being appointed per 150 people and the total number of staff employed being 335,000 at £25,000 per year, the cost of wages and running costs would be £100 billion per year, resulting in a total net of £20 billion per year; additionally, the tax revenue generated would amount to £40 billion per year.
Introduce membership fee of £250.00 per adult in order to provide funding, generating a total income of £150 billion per year to fund 600,000 staff, or 1200 staff spread over 500 ‘import’ sites to deal with distributing goods imported to the UK to customers, additionally, the tax revenue generated would amount to £75 billion per year.
Introduce a state backed investment scheme whereby a £150 per month membership fee will be charged to all 50 million adults in the UK - generating a revenue of around £90 billion per year. On the 1st of December each year, 5 million individuals will receive a grant worth £10,000 which they have to spend within 7 days – boosting GDP by an estimated £50 billion and generating £40 billion in terms of investment for the Government.
Use the £40 billion generated from the investment scheme to invest in 1000 state backed investment hubs across the country, with a total of £40 million per year per hub – those hubs would have the capacity to issue grants of £8000 for a total of 5000 individuals per year. Those who receive the grants will have 14 days to spend the £8000, generating an additional £40 million per year, per hub in GDP growth.
Build 10 Nuclear power stations across the UK, enough to power over 40 million houses, finance the £350 billions of costs over a 50-year period at a rate of 5.85% per year, or £15 billion per year – also invest £150 billion over 5 years in heat pumps/ground source heat pumps, solar, battery storage to reduce the UKs reliance of fossil fuels to 0% over 5 years.
Introduce a £100 per month energy and water membership for all adults over 18, generating a total revenue of £30 billion per year – employ 35,000 staff, at £58,00 per year, to manage to cost of repair and other duties at a cost of £2 billion per year – ringfence an additional £10 billion per year for other staff and materials – generating a total profit of £18 billion per year. Introduce a 100% windfall tax on profits, generating £18 billion per – the tax generated from the salaries will also ensure £1 billion per year of revenue.
Introduce working aged investment scheme’ whereby all adults in the UK are automatically assigned a £50,000 loan, for all 50million individuals , repayable over 25 years – introduce a ‘repayment’ fee of £487.11 per month, automatically taken from the ‘flat rate’ payment – give individuals 14 days to spend the £50,000, otherwise the remaining balance of the payment is automatically clawed back, allocated the £3.5k of interest per person into a ‘wealth fund’ worth a total of £175 billion per year.
To reduce GDP, use all of the £100 billion from the wealth fund to attract individuals to the UK who are able to work and provide additional tax revenue. Pay 10 million £10,000 each come to the UK stay in the UK for 5 years, after a period of 5 years, they would be able to access the ‘flat payment’. Assuming employment rate amongst the 10 million was 50%, at a wage of £25,000, the additional tax generated would be £125 billion.