Tories claim to have uncovered another Labour u-turn

The Conservatives claim to have uncovered yet another Labour policy u-turn, this time over promises made to the small business community.

Following the furore over whether Jeremy Corbyn promised to wipe student debt, the Labour leader is again in hot water over rowing back on comments made to the Federation of Small Businesses earlier this year.

Corbyn told the FSB back in April: "When I say any tax rises will fall on the broadest shoulders, I want to make it clear today that we will not raise the small business corporation tax rate."

The Conservative party has highlighted how this was contradicted just weeks later by Labour's own manifesto, which said in the small print (sic):

Raising the headline rate to 21% from 2018-19, 24% from 2019-20 and £26% from 2020-21. Small Profits (below £300,000) rate is 20% from 2018-19 and 21% from 2020-21 ‘Ready Reckoner’ includes behavioural change 2013 Ready Reckoner for assumptions on relationship between headline and small profits rate

Currently all companies pay a corporation tax rate of 19 per cent.

The Tories argue this pledge would have involved "hiking taxes on over a million small businesses, risking job losses, lower wages, and local businesses closing".

Cabinet secretary Damian Green MP, said: “Labour spent their election campaign offering reckless and unachievable promises to voters. With another betrayal now exposed, it's clear Labour’s promises are simply intending to deceive.

“Labour’s policies are crumbling before our eyes – it’s clear that their plans would make people’s lives a nightmare with higher taxes, lower wages and fewer jobs. Whilst the Conservatives are getting on with the job of building a stronger economy and a better country for future generations.”

Labour had declined to comment at the time of writing.

Full story: Tories claim to have uncovered another Labour u-turn: City A.M.