Labour’s Claimed £71bn Conservative Policy Costs: Fact-Checking the Numbers

Labour has scrutinized the potential costs of several proposed Conservative policies, alleging that they amount to a substantial £71 billion, which they claim Chancellor Rishi Sunak has already promised.

The figure, according to Labour, is projected to cover expenses the country would face under the Conservative government in the final year of the forthcoming parliament, just before the scheduled election in 2029-30.

A significant portion of this £71 billion is attributed to the purported £46 billion commitment by the Conservatives to abolish National Insurance Contributions.

Labour contends that this pledge was made by Jeremy Hunt during the Spring Budget. However, upon closer examination, Hunt’s statements suggest a nuanced approach, indicating that the abolition would be a long-term ambition rather than an immediate plan.

The claim that this policy would cost £46 billion annually starting next year appears misleading, as the Conservatives have not definitively confirmed its implementation – with the Chancellor explicitly stating it won’t occur in the next parliament.

Labour’s calculations also include an estimated £10 billion yearly cost by 2029-30 for scrapping inheritance tax, a move that the Conservative party has not officially committed to yet.

When it comes to child benefit changes, Labour has projected a £7.7 billion annual expenditure by the Conservatives to address “distortions” in the tax system, based on certain assumptions regarding child benefits.

However, the Resolution Foundation, cited by Labour for this estimate, has since updated their model, revising down the expected cost. Moreover, the Conservatives have clarified their plan to raise the threshold for child benefit eligibility to £120,000, as opposed to the assumption made by Labour.

Labour’s assessment of the cost of the Conservatives’ National Service plan, which includes employing 30,000 18-year-olds annually, is also based on questionable assumptions.

Considering the lack of concrete commitments from the Conservatives on these policies, the £71 billion figure projected by Labour may not be entirely accurate. The actual cost to taxpayers under a Conservative government will only be known once the party publishes its manifesto.

The Labour Party was contacted for comment.

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