The Miliband agenda

Here’s what to expect

52p top rate of tax

Ed Balls won’t be looking for money when he says the ‘additional’ top rate of tax will go back up — there’s no evidence it will raise any. Top-band income tax will be 50p, which added to the extra 2p National Insurance would give Britain an effective top tax rate of 52 per cent. If it’s a temporary measure, as Balls has hinted, one-percenters will defer bonuses and disappear from the statistics (a problem, when they pay £1 in every £4 of income tax). If it’s permanent, they may scarper. If Balls really wanted to raise money from the rich he’d cut the 45p rate. But what he’s really after is banking public support by banker-bashing.

Corporation tax

In his first Budget, Ed Balls would raise corporation tax by 1 per cent to 21 per cent, the first increase since 1973. And that might just be the start. Any rise could mean less employment and lower pay: the CPS estimates that putting the rate up could cost 96,400 jobs in the next Parliament. The coalition has been cutting corporation tax and employment has risen by 1.9 million.

Mansion tax

If you enjoy council tax and stamp duty, you’ll love this. Labour’s mansion tax will be like a council super-tax on homes worth more than £2 million. Ed Balls says that houses worth over £2 million will pay £3,000 a year, amd won’t be drawn on higher bands. But he wants £1.2 billion a year out of around 100,000 homes — meaning an average charge of £12,000. One of those paying will be Ed Miliband, unless he sells his house; it will be little comfort to Cameron and Clegg that they just miss out.