Fears: Six in 10 city institutions expect Keir Starmer’s party to increase income and corporation tax
Investors believe Labor will keep their promises and raise income and corporate taxes if they win the election.
A poll of more than 70 council bodies shows that six in 10 institutions expect Sir Keir Starmer’s party to increase income and corporation tax. The research from investment bank Nomura found that only three in 10 said they expected taxes to remain the same after a Labor victory.
The findings came despite assurances from Labour, which was also accused by Prime Minister Rishi Sunak of planning a secret £2,000 tax rise.
Clients surveyed include corporations, pension funds, hedge funds and insurance companies, and they expect a Labor majority of 75 seats or more.
Nomura’s George Moran said: ‘Without major changes to interest rates or growth prospects, Labor will face tough fiscal policy choices.
It would be optimistic to rely on improvements in the economy.”
“Analysts said both sides face a challenge. Ashley Webb of Capital Economics said: “If they want government spending to rise without increasing borrowing, taxes will have to rise.”