Ten things you need to know about Labour’s manifesto

Labour has launched its election manifesto in Manchester today, entitled ‘Britain can be better’. The document (pdf here) includes some new policies and others already announced. Here are ten key things you need to know, just in case you don’t have time to read all 86 pages:

1. Reducing deficit every year — but for how long?

The centrepiece of the manifesto is the ‘budget responsibility lock’, which will ensure that a Labour government will cut the deficit every year. The commitment, which was reportedly added to the manifesto last Friday, doesn’t say by which point Labour will eliminate the deficit:

‘A Labour government will cut the deficit every year. The first line of Labour’s first Budget will be: “This Budget cuts the deficit every year”. This manifesto sets out that we will only lay a Budget before the House of Commons that cuts the deficit every year, which the OBR will independently verify. We will get national debt falling and a surplus on the current budget as soon as possible in the next parliament. This manifesto sets out that we will not compromise on this commitment.’

The Tories have seized on this weakness, with George Osborne saying in a statement that Labour’s manifesto contained ‘no new ideas for Britain’ and ‘If you read the small print independent experts like the IFS have confirmed he would run a deficit every year. That means more borrowing, more debt and higher taxes.’

2. Raising the minimum wage to £8

One of the five ‘new commitments’, Labour has promised to boost the minimum wage:

‘Too many people do a hard day’s work but remain dependent on benefits. We will raise the National Minimum Wage to more than £8 an hour by October 2019, bringing it closer to average earnings’

In his speech this morning, Miliband said this commitment will ‘mean someone working full time on the National Minimum Wage being £800 a year better off compared to continuing with the rate of rise under the Tories.’

3. Freezing rail fares and cap on future rises

Another new commitment: the manifesto points out that rail fares have risen by 20 per cent since the last election, so Labour pledges that:

‘Rail fares will be frozen next year to help commuters while we implement reforms. A strict fare rise cap will be introduced on every route for any future fare rises, and a new legal right for passengers will be created to access the cheapest ticket for their journey.’

Miliband also said that Labour would introduce a ‘new legal right for passengers will be created to access the cheapest ticket for their journey.’ This pledge will be funded by delaying the A27 and A358 road projects.

4. Curbing press freedom by revisiting Leveson

The new, tougher press regulator Ipso isn’t good enough for Labour. The manifesto suggests that the party will look to promote a Leveson-backed Royal Charter press regulator:

‘We remain strongly committed to the implementation of the recommendations of the Leveson Inquiry. We expect the industry to establish a mechanism for independent self-regulation, which delivers proper redress for individuals, as set out in the Royal Charter, and agreed by all parties in Parliament. We made a promise to victims of the phone hacking scandal. We stand by that promise and will keep it. ‘

The manifesto also said that Labour would ‘take steps to protect the principle of media plurality, so that no media outlet can get too big, including updating our rules for the 21st century media environment.’

5. Increasing tax credits

The manifesto also pledges to ‘protect’ tax credits so they rise in line with inflation from next year:

‘Labour believes in rewarding work and in restoring contribution to the heart of our system. So we will not cut tax credits. We want everyone who can to have the chance to contribute through paid work, so we will create a more tailored back-to-work system that helps people secure and keep jobs.’

6. Introducing 10p and 50p tax rates

Labour has pledged to introduce a lower 10p-starting rate of tax and says that the basic/higher rate of VAT, Income Tax or NI will remain the same:

‘We will create a fairer tax system, helping those on middle and lower incomes by introducing a lower 10p starting rate of tax, paid for by ending the Conservatives’ Marriage Tax Allowance. We will not increase the basic or higher rates of Income Tax or National Insurance. Nor will we raise VAT, and we renew our pledge not to extend it to food, children’s clothes, books, newspapers or public transport fares. ‘

One of the cornerstones to the manifesto to fund all these spending plans is to ‘reverse the 50p tax cut so that the top one per cent pay a little more to help get the deficit down’.

7. National primary childcare service

Labour claims that the Tories have ‘let down working families’ by scrapping the legal requirement for after-school or breakfast clubs. So to resolve this, Labour will pour money into a new National Primary Childcare Service, to guarantee childcare from 8am to 6pm. All volunteers will have to be CRB-vetted:

‘We will help families by expanding free childcare from 15 to 25 hours per week for working parents of three and four-year-olds, paid for with an increase in the bank levy. We will also introduce a legal guarantee for parents of primary school children to access wraparound childcare from 8am to 6pm through their local primary school. As well as helping parents, this will provide children with before and after-school clubs and activities, helping to raise their aspirations and attainment. This will be underpinned by a new National Primary Childcare Service, a not for profit organisation to promote the voluntary and charitable delivery of quality extracurricular activities.’

The NPCS would be paid for by cutting off government funding for the New Schools Network — a charity which promotes free schools. The NSN is a small charity, which suggests this new scheme might nee money from a second source.