Budget leaves Labour seeking savings to fund pledges

Labour now intends to pay for its NHS and school breakfast plans through future savings to public spending if it wins power. The party had planned to fund the flagship policies by replacing the UK’s current “non-dom”" tax regime. Labour had planned to raise an extra £2bn by replacing tax breaks for overseas workers. It had also set aside £1.

6bn to pay for more appointments in the NHS. But the party has now ruled out a new tax on wealth to make up the shortfall. The Government is planning to increase day-to-day spending by 1% every year until 2029. The increase will be made up of cuts to the National Insurance budget, which is currently at £1.

2bn. The Government is also planning to make a further £1bn in cuts to National Insurance. The cuts will be paid for by a new National Insurance fund, which will be set up to cover the cost of the cuts. Labour wants to extend tax on profits of energy and gas firms to 2029.

It says the money raised from that tax would fund its planned green investment scheme. But the Tories say it would force them to raise more money by raising taxes on the rich. Labour says it wants to use the money to fund a new national health insurance scheme. The party branded the suggestion an “unfunded tax pledge”" that would cost £46bn a year to deliver.

The party said the proposal would be ‘unrealistic’ and ‘unworkable’ The proposal was backed by the UK’s richest people, who would get a cut of the tax revenue.

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