Labour's manifesto includes plans to increase overall taxation for almost £50 BILLION per year. A small part of this huge sum, supposedly £6.4bn, would come from increasing income tax and some would come from increasing corporation tax; where the rest would come from is anyone's guess.
Taking such a sum out of the economy and chucking it at an assortment of inefficient and profligate public services would go some way to creating a recession. There can be no doubt that many businesses would relocate away from the UK and talented high-earners would look abroad as well. Consequently, it is questionable as to whether the predicted sums would be forthcoming in the first place and it must be highly likely that there would be a significant shortfall that would have to be met by an increase in borrowing. Regardless, there would be an adverse impact on inflation, which would be likely to rise substantially.
Additionally, Labour has now added nationalisation of the water industry to its list of industries to be taken over by the state in the event that it gains power. The cost of this programme, plus its plans to 'invest' in a variety of public sector projects, has been stated to be something like £250 BILLION, an amount to be funded by borrowing. This borrowing, plus interest, would then have to be repaid over a period of years, adding more pressure to the public purse and causing a further increase in inflation.
Labour's manifesto, if implemented, would see the United Kingdom return to the dark days of the 1960s and 1970s. Our country would be set on a path to becoming a Marxist state and enterprise and innovation would be stifled, stagnate and drift away like a cloud of smoke. As a nation we would become much poorer, less educated and less competitive; it would be an unmitigated disaster.
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