Other parties

Reform UK

They have released its manifesto, which it calls a “contract”, for the 2024 general election.

Nigel Farage has unveiled a raft of populist pledges, massive tax cuts, and £140bn in spending commitments:

  • The party has pledged to raise the income tax threshold from £12,570 to £20,000. They also plan to introduce a corporation tax-free allowance of £100k in profits and lift the threshold when businesses must be VAT registered to £150k from £90k.
  • It also promises to abolish business rates for small and medium-sized firms on the high street. This would be paid for by a 4% online delivery tax for large multinationals.
  • Reform plans to scrap targets for net zero which they claim could save £30bn a year.
  • Reform UK aims to cut NHS waiting lists to zero in two years. It promises to exempt two million front-line healthcare and social care workers from the basic rate of income tax for three years. NHS patients would receive a voucher for fully funded private treatment if they could not see a GP within three days, a consultant within three weeks, or have an operation in nine weeks.

It’s worth noting that the Institute for Fiscal Studies thinktank said the party’s plans were based on “extremely optimist assumptions” about growth and the sums “do not add up”, meaning the manifesto as a whole was “problematic”. This was met with a response from Nigel Farage, in which he stated “not something with which we’re going to govern the country”.

The Liberal Democrats

Their 2024 manifesto outlines a comprehensive set of policies across various sectors, focusing on health, environment, education, the economy, and immigration:

  • A 1p increase in income tax to fund the NHS and social care. Prioritising mental health services with reduced waiting times and increased availability of talking therapies. Introduction of free personal care for older or disabled individuals, increased Carer’s Allowance, and statutory respite breaks for unpaid carers.
  • Introduce a three rates of capital gains tax that mirrors the current Income tax rates, 20% (for gains up to £50,000), 40% (between £50,000 and £100,000) and 45% (over £100,000). Unlike now the rate would be based solely on your gains. The capital gains tax-free allowance would go up from £3,000 to £5,000 and would also introduce a new “inflation allowance”, so that any gains that are purely the result of inflation are not taxed at all.
  • Green Investment - £80 billion capital investment for environmental initiatives, including insulating homes and generating 80% of electricity from renewables by 2030. Conversion of the rail network to electric or hydrogen by 2035, and a £4.5 billion investment in restoring local bus routes.
  • Cracking down on tax avoidance by multinationals and increasing the digital services tax from 2% to 6%. Expanding the British Business Bank and funding a new Green Investment Bank with an initial £5 billion.

In their 116-page manifesto they claim to have presented a “fully costed plan to tackle the healthcare crisis from top to bottom”. However as covered in the previous section funding made up by targeting tax avoidance and evasion maybe be difficult to achieve

The Green Party

The Green Party's 2024 manifesto focusing on environmental sustainability, social justice, and economic reform:

  • The Green Party aims to reduce climate emissions to net zero by 2030 through a Green New Deal, investing £100 billion annually in policies to tackle the climate crisis. This includes building 100,000 new zero-carbon homes for social rent each year, improving tenants' rights, and lowering rents.
  • The party is prepared to borrow to invest in climate action and public services, arguing that such investments will save costs in the long run. However, they acknowledge the need to manage inflation and ensure public spending does not reach unsustainable levels.
  • NHS and Social Care: Increasing NHS funding by at least £6 billion per year until 2030, rolling back privatisation, and guaranteeing free health and dental services.
  • Abolishing university tuition fees, providing full student grants, and investing more in further and higher education. The manifesto also includes plans to increase spending per pupil in schools and offer free universal early education and childcare for all children, staring formal education at age seven.

Your key contact

For more information on the issues addressed in this document or the impact this could have on your wealth, please contact us.

Lewis Giaramita

Head of Investments

lewis.giaramita@irwinmitchell.com

The information given and opinions expressed are subject to change and should not be interpreted as investment advice. All data is sourced by IM Asset Management Limited unless otherwise stated. All financial and wealth management services are provided by IM Asset Management Limited. This commentary is intended for advisers and experienced investors only