The Tories' Smear Analysis of Labour Party Policy

THE TORIES
SMEAR ANALYSIS OF
LABOUR PARTY POLICY
The Scorecard for 2015/2016
5th January 2015
Foreword
The independent Institute for Fiscal Studies has said Labour has the most cautious
approach of all the parties and has promised no net giveaways. Labour has made no
unfunded spending or tax commitments.
In contrast to that cautious approach, todays dodgy Tory dossier is riddled with untruths
and errors on every page. It is not an impartial exercise but a political smear based on
false assumptions made by Tory advisers, including dozens of claims which are not
even Labours policies.
Their smears aim to hide the fact that the Tories have made over 7 billion a year of
unfunded tax promises. George Osborne again failed to explain today how they would
be paid for. The public still do not know if it will be another VAT rise, even deeper cuts
to public services or both.
If the Tories wanted an honest debate they would stop blocking our proposal to allow
the OBR to independently audit the manifestos of the main parties.
And they would have allowed the Treasury to involve Labour in the production of proper
costings. It is clear the Tories want to carry on spreading smears about Labour while
avoiding independent scrutiny of their own plans.
George Osborne claimed his plan is working. But there is nothing competent about Tory
policies that leave working people worse off and lead to over 200 billion more
borrowing than planned. Labour will cut the deficit every year and balance the books in
a tough but fair way, instead of taking Britain back to public spending as a share of
national income last seen in the 1930s.
Ed Balls
Introduction
Today the Tories tried to use smears to argue that Labour had unfunded spending
plans. But this document shows that this has back fired:
Smears: Their dossier was full of basic inaccuracies and untruths about what
Labours policies are.
Tory numbers do not add up: George Osborne couldnt say how his own plans
for tax cuts or money for the NHS would be funded
The truth is that Labour is the only party to have committed to having no unfunded
commitments in our manifesto.
Contents:
Tory smears
Tory numbers do not add up
Labours fully funded plans
Annex: Dossier error details
Tory smears
Todays Tory dodgy dossier is full of errors. The methodology used is flawed and it is
full of errors and smears that misrepresent Labour policy.
Flawed methodology
Examples of the flawed methodology that underpin this so called A Cost Analysis of
Labour Party Policy include:
2015/16
The dossier says that it relates to the fiscal year 2015/16 and includes full year costings
of measures. But the fiscal year will have started before the general election even takes
places. Even more misleadingly, the Tories simply assume that fully funded spending
plans are not funded by claiming that spending would start before revenue raising
measures have been implemented. They have, for example, provided a cost for our GP
access guarantee in 2015/16 despite no commitment from us on introducing it within
that year, while they have taken no account of our funding of additional GPs from a
Mansion Tax.
Non-Treasury sources for the costings:
In the past the Conservatives have made great claims that their attacks on Labour have
been based on independent Treasury costings this is not the case with the majority of
this document. Less than half (45%) of the assumptions on new spending are based on
HM Treasury Opposition costings.
In many cases they have failed to explain why these alternative sources have been
used. For example, on one occasion the Conservatives drawn on a government review
from 2008 to bizarrely claim that Labour cannot make savings announced in December
2014.
Treasury costings have been done on the basis of Tory advisers assumptions
Almost all of the Treasury costings that have been released today that are used in the
Tory dossier are based entirely or to a significant degree on assumptions made by
Conservative Special Advisers. In many cases they bear no resemblance to Labour
policy.
Errors and smears

As well as being based on a flawed methodology, a detailed line by line analysis of the
Tory dossier (included in the annex to this document) shows a litany of errors and
smears. The truth is that our manifesto will contain no unfunded tax or spending
commitments, and this analysis shows that unlike the Tories we are delivering on that
promise.
Examples of errors and smears include:
Pretending Labour has committed to reverse Tory cuts

The dossier says we will reverse over 5 billion of cuts the Tories have made in
2015/16, even though they produce no evidence of Labour spokespeople promising to
reverse those cuts. And they have ignored the fact that we have explicitly said that we
will not reverse cuts in 2015/16:
We wont be able to reverse all the spending cuts and tax rises that the
Tories have pushed through. We will have to govern with less money,
which means the next Labour government will have to make cuts too....
The governments day-to-day spending totals for 2015/16 will be our
starting point. There will be no more borrowing for day-to-day spending.
Any changes to the current spending plans for that year will be fully-funded
and set out in advance in our manifesto.
Ed Balls, speech to Fabian Society Annual Conference, 24 January 2014
An example of the wild assertions in this area is that they say that a commitment to
"take steps to promote cycling by making it safer and more accessible" amounts to a
specific 63 million spending commitment to cancel the abolition of Cycling England
Towns and Cities initiatives - this is just nonsense.
Being plain wrong about what is our policy
In several cases the Tory dossier states that something is a Labour policy when it is not.
Examples include:
The dossier claims we are committed to ban food waste from landfill. But it is
based on an out of date 2013 quote. This is not Labour's policy - it was not
agreed at Labour's National Policy Forum in July 2014, is not in the NPF
document and will not be in our manifesto.
The dossier says Labour has committed to a major expansion of University
Technical Colleges with a further 100. But this is a recommendation from Andrew
Adonis Growth Review and is not Labour Party policy and will not be in our
manifesto.
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Making misleading assumptions about Labour policies

Although their dossier is not open about it, many of the assumptions underpinning these
costings have been made by Tory special advisers. Indeed the Treasury costing
documents repeatedly state that special advisers have instructed officials to provide a
costing on the basis of assumptions they have provided that bear no resemblance to
Labour policy. Examples include:
Labour has set out a plan to guarantee a job for every young person out of work
for a year. We have provided detail on how it would work and released House Of
Commons Library figures on what it would cost. Tory special advisers ignored
that costing and instead instructed officials to cost it on the basis of the Future
Jobs Fund, a programme that operated under the previous Labour Government.
In looking at costs for additional contributory jobseekers allowance civil servants
have been told to assume that claimants would be eligible for the higher rate of
JSA ( C) for six months, although not all claims last that long. This is a ridiculous
assumption to make, and ignores the fact that Labour have committed to
introducing a higher contributory rate of JSA on a cost-neutral basis.
Including costings for policies that they have announced themselves
In a particularly extreme example of how flawed their analysis is, the Tory dossier also
tries to attack Labour for costs associated with policies the Tories claim to have
announced themselves. For example:
They say it will cost 3.7 billion to give the Green Investment Bank borrowing
powers - but it is their policy to give it borrowing powers. In his 2011 Budget
speech, George Osborne said that "from 2015-16, and subject to our overall debt
target being met, we will allow the Green Investment Bank to borrow and invest
in a better future".
They attack Labour for proposing that early release should be restricted for those
who refuse to pay back profits from crime, on the very day their own Serious
Crime bill, including just such restrictions on early release, has its second reading
in the House of Commons.
Wrong about how much our revenue raisers would bring in
They have made assumptions to minimise the revenue which they claim can be raised.
For example:
Claiming that measures which we have said we will deliver, and they have
subsequently said that they are just consulting on whether to introduce, will not
raise any revenue. This is despite the fact they have neither committed to
introducing them nor raised any revenue from them, such as introducing a levy
on tobacco companies.
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Using the assumptions of Tory advisers that tax changes will only come into
force later in the Parliament, such as the restriction to pension tax relief for top
earners.
Tory numbers do not add up
It is the Conservative Party, not Labour, which has questions to answer about its
spending plans. The Tories have set out multi-billion pound commitments with no
indication of where the money to pay for them will come from.
Unfunded tax promises
In his speech to Conservative Party Conference last year David Cameron made two
unfunded tax promises for the next Parliament.
Increasing the Personal Allowance to 12,500
Increasing the higher rate threshold to 50,000
The Treasury has said that the combined cost of these policies, if introduced at the
end of the Parliament, is 7.2 billion.
The tax cuts being proposed by David Cameron would cost around 7.2bn, the Treasury has
said.
BBC News, 1 October 2014
David Cameron has held out the prospect that the tax cuts he announced at his partys
conference earlier this week could be implemented shortly after the next election.
The prime minister, speaking during his trip to Cyprus and Afghanistan, indicated that the first
moves could happen before the deficit is wiped out in 2017-18 and even as early as the first
budget after the country goes to the polls in May.
There had been an expectation that the 7bn tax cuts Cameron announced in Birmingham on
Wednesday, including raising the 40p threshold to 50,000, might not occur until there is no
longer a budget deficit, or even until the final year of the parliament.
But speaking to reporters in Kabul Cameron said: I think what weve shown in the last parliament
is that its perfectly possible, if you manage the nations finances wisely, to deliver tax reductions
at the same time as making savings and efficiencies.
So in the last parliament we had to make something like 100bn of [spending] cuts but at the
same time as that we actually made tax cuts in terms of the personal allowance of 9bn so in a
parliament.
Guardian, 3 October 2014
According to the House of Commons Library, delivering these tax cuts earlier in the
Parliament would be even more expensive they would cost 16 billion a year if
introduced in 2016-17. The Tories have yet to say how they will pay for these tax
policies measures which will cost the Exchequer the equivalent of a substantial
increase in VAT.
At 12.33pm in todays press conference George Osborne was asked how these tax
promises would be funded. He refused to give an answer.
Unfunded NHS promises
In the 2014 Autumn Statement, George Osborne claimed to be spending an

additional 1.2 billion on the NHS. But this is not new money it was allocated from
the Governments Reserve.
The money from the Reserve will also only exist in 2015-16. In future years, the
pledge is unfunded and would require cuts to other departments.
HM Treasury, Autumn Statement 2014, December 2014, p.65
Other commitments
The Tories have also pledged support for other multi-billion pound policies without
saying where the money will come from. Last year David Cameron pledged support
for HS3, which he estimated could cost up to 7 billion.
Asked how much it would cost, Cameron said: There will be a proper report in March which will
put a cost on the scheme, but to give you an estimate, if HS3 were to cost mile-per-mile as HS2
we would be looking at an investment of between 6bn and 7bn. I believe it is affordable.
The Guardian, 27 October 2014
And David Cameron has also said he would like to increase the inheritance tax
threshold without saying how he will pay for it. Increasing it to 1 million the
Tories previous policy would cost billions.
The last government allowed you to pass it between husband and wife, so the effective threshold
was 650,000, but I have got ambitions and would like to see that go further.
David Cameron, Financial Times, 15 October 2014
Lifting the threshold for the 40 per cent levy all the way to 1m could cost billions of pounds a
year at a time when the government is trying to cut a still substantial deficit.
Financial Times, 15 October 2014
Labours fully funded plans
As the independent Institute for Fiscal Studies has said, Labour has been the most
cautious of the three main parties and has not made unfunded commitments.
Of the main parties, Labour has perhaps been the most cautious of the three in that, at least on
the basis of its own costings, it appears to have managed not to announce an overall net
giveaway. Just looking at tax and social security spending policies, Labour has announced a
small net takeaway of 0.1% of national income.
Institute for Fiscal Studies, Fiscal Aims and Austerity: The Parties Plans Compared, December
2014, p.21
Ed Miliband stated clearly last month that Labour will only make commitments in our
manifesto that are fully funded.
"We will only make commitments in our manifesto that are properly funded.
"Not commitments that depend on extra borrowing.
"Thats why weve explained how we will pay for every policy that weve put forward: costed,
credible and funded."
Ed Miliband speech, 11 December 2014
Our first pledge of the election campaign, which will appear on our 2015 pledge
card, made this clear.
We will build a strong economic foundation and balance the books. We will cut the deficit every
year while securing the future of the NHS. None of our manifesto commitments require additional
borrowing.
Labour press release, 11 December 2014
Labour has called for the Office for Budget Responsibility to be allowed to
independently audit every spending and tax commitment in the manifestos of the
main political parties.
The British people rightly want to know that the sums add up.
So we will go one step further and ask the independent Office for Budget Responsibility the
watchdog set up by this government to independently audit the costings of every individual
spending and tax measure in Labour's manifesto at the next election.
Ed Balls, speech to Labour Party Conference, 23 September 2013
This proposal is supported by the Tory Chair of the Treasury Select Committee, who
said it could enhance the quality of public debate.
OBR involvement has merit if it can enhance the quality of public debate on tax and spend.
Andrew Tyrie MP, Daily Mail, 14 October 2013
But George Osborne himself refuses to agree to independent audits.
Sources close to George Osborne said he will oppose a draft amendment to the law to allow the
Office for Budget Responsibility to audit commitments in the manifestos of the main political
parties.
Daily Mail, 14 October 2013
When pressed on this issue at the Conservative Press Conference, by journalists

from The Times and Channel Five News, George Osborne repeatedly evaded the
issue.
George Osbornes failure to answer this question reveals the truth: he does not want
to allow independent analysis, preferring instead to put Treasury officials in an
impossible position of having to use blatantly false assumptions provided by
Conservative advisers.
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Annex: Dossier error details

Claimed New Spending
Department for Business, Innovation and Skills
Equal numbers of apprenticeships and university entries by 2025
Summary
The Tories are wrongly claiming this national goal would cost money in 2015, even though the
goal is for 2025.
Tory claim about our policy
Their claim is that this policy will cost 710 million.
Reality
Ed Miliband made clear in his speech to Labour Party Conference, September 2014, that this is
a national goal for 2025, not a policy for immediate implementation.
http://www.labour.org.uk/blog/entry/2014-labour-conference-speech
Apprenticeships must be at least 2 years and at level 3 or above, and technical
apprenticeships to be a minimum of three years
Summary
Requiring that all apprenticeships should last a minimum of two years and should be
level-three qualifications. The Tories claim this would cost 680m in 2015-16 but in reality it
would not cost any additional money.
The Tories claim this policy would cost 680m in 2015-16.
Reality
This policy does not cost money because it makes no commitment on the total number of
apprentices. It is about the quality of apprenticeships. Our policy is about requiring that short
courses that do not meet a minimum standard are not misleadingly branded as apprenticeships.
Government procurement and apprenticeships
Summary
Ensuring the provision of high quality apprenticeships is a prerequisite for any bid for significant
government contracts. The Tories claim this would cost 67m in 2015-16 but in reality it would
not cost any additional money on procurement over existing procurement budgets.
The Tories claim this policy would cost the Exchequer 67 million in 2015-16. The Treasury
costing assumes that any higher costs to the employer, resulting from employing more
apprentices, are passed through to the exchequer because these costs will raise the cost of
providing the contract.
Reality
This policy would not lead to any additional spending on procurement over existing procurement
budgets. Instead, this policy is about changing the requirements on the companies ahead of
bidding for contracts and changing the way companies recruit rather than increasing costs.
Borrowing powers for the Green Investment Bank
Summary
The Tories claim that giving the Green Investment Bank borrowing powers would cost 3.7
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billion in 2015-16. It ignores the fact the Tories themselves said they would give the GIB
borrowing powers.
The Tories wrongly claim this policy would cost an additional 3.7 billion in 2015-16. They
assume that the GIB is given borrowing powers and is able to take on borrowing costs that in
2015/16 are three times the level of capital which is currently assigned to it.
Reality
The Tory dossier states that The Labour Party have not specified within what timescale the
Green Investment Bank would use these new borrowing powers and deploy the additional
investment.
The Tory dossier ignores the fact that in Budget 2011 the Government committed to give the
GIB borrowing powers in 2015-16. The reason they are no longer committed to doing this is
because they have failed to meet their target to get debt falling as a percentage of GDP by then.
I can also confirm today that from 2015-16, and subject to our overall debt target being met, we will allow
the Green Investment Bank to borrow and invest in a better future.
George Osborne, Budget 2011 statement, 23 March 2011,
http://webarchive.nationalarchives.gov.uk/20130129110402/http://www.hmtreasury.gov.uk/2011budget_speech.htm
Major expansion of University Technical Colleges

Summary
The Tories claim that Labours policy to expand University Technical Colleges will cost
1.419bn by 2025/26. This costing is wrong as the Government has said itself that it would open
more UTCs and we support this policy since it will take place within existing capital budgets.
According to the Tories, Labour has a policy of creating 100 new University Technical Colleges,
which will cost 1.419bn by 2025/26.
Reality
This costing is wrong. The Government has itself said that it would open more UTCs.
We support this policy since it will take place within existing capital budgets.
What the Government have costed is an idea proposed in the Adonis Review, which does not
constitute Labour Party policy.
The 7 new UTC projects approved today bring the total to 57 UTCs open or in development.
George Osborne said: University technical colleges are a key part of the governments long term
economic plan because they help ensure young people have the right skills so they can maximise
their potential.
DfE/HM Treasury, 5 August 2014, https://www.gov.uk/government/news/new-technical-schoolsprovide-job-boost-for-young-people
Our plan says every child should have access to the skills and experiences they need to help
them get on in life.New University Technical Colleges and studio schools giving young people a
better chance than ever of developing a specialism that will help build a rewarding career.
Nicky Morgan speech to Conservative Party Conference, 2014,
http://press.conservatives.com/post/98807929855/nicky-morgan-speech-to-conservative-party
2011-12: Additional funding for University Technical Colleges = 125.9 million
DfE, Consolidated Annual Report and Accounts 2012-13, p12,
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https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/275186/DFE_Grou
p_Consolidated_12-13_ARA.pdf
Create a British Investment Bank and local and regional business banks
Summary
The policy would create a British Investment Bank, along with a network of local and regional
business banks with a responsibility to boost lending in their area.
The Tories claim this policy would cost 200m in 2015-16. They claim it is unfunded because
there is uncertainty around the level and timing of any increased revenue from annual licence
fees, which is how Labour would capitalise the BIB.
Reality
Labour has said that we would use increased revenue from annual spectrum licence fees to
support a proper British Investment Bank. When the fees are brought in we will use them in this
way. We have not committed to any additional funding.
Establish a UK Small Business Administration
Summary
This policy would establish a UK Small Business Administration.
The Tories claim this policy will cost 83m in 2015-16.
Reality
This is not an official Treasury costing and is incorrect. The SBA will not be a new quango and
will be funded by a reallocation of existing resources.
Inquiry into construction industry blacklisting.
Summary
This policy would launch an inquiry into blacklisting in the construction industry if the current
Government refuses to do so.
Reality
This is not an official Treasury costing. The inquiry would be funded from within existing
resources.
Reverse the doubling of the unfair dismissal qualification period
Summary
The Tories claim this policy would reverse the doubling of the unfair dismissal qualification
period. However we have not committed to this.
Reality
This is not our policy we have not committed to reversing the doubling of the unfair dismissal
qualification period.
Cabinet Office
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Restore Funding for TUC Education / UnionLearn

Summary
The Tories claim that we will increase funding for UnionLearn, but the source they use simply
does not say this.
The Tories say that a commitment to support UnionLearn for the Duration of the Parliament
means that we will increase its funding from 15.3 billion to 21.5 billion.
Reality
This is a misrepresentation of Labours policy. The source used by the Tories makes no specific
reference to the funding of Union Learn. Labour has made no unfunded spending commitments
and we will include no unfunded commitments in our manifesto.
Reformed Senate of the Nations
Summary
The Tories say that Labours plan for a Senate of the Nations [sic] will not cost any money in
2015/16. We agree.
According to the Tories, this policy would cost nothing in 2015/16 but new election costs would
be 85.7 billion.
Reality
We agree that this has no cost in the first year of the next Parliament. We have not set out
details of how a reformed Senate of the Nations and Regions would work. We will not make any
unfunded spending commitments in our manifesto.
Department for Communities and Local Government
Local Public Accounts
Summary
The Tories are wrongly claiming that it would cost money for local authorities to hold themselves
to account.
Reality
Local authorities run their own accountability mechanisms. This policy means greater powers for
existing council committees and reformed committees, not new committees.
Department for Energy and Climate Change

One million interest free Green Deal loans
Summary
The Tories are wrongly claiming that this policy would require additional money.
They claim this would cost 27 million.
Reality
We've been clear that our energy efficiency package would take place within existing budgets
that have not yet been allocated and would not cost any additional money.
As part of the Autumn Statement in December 2013, 450 million was made available to
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support domestic installation of energy efficiency measures, 300 million of which was budgeted
for the next Parliament but not yet allocated. We would use these funds to pay for this policy.
An End to Cold Homes: Labours energy efficiency green paper, 10 November 2014, p. 26-27,
http://www.yourbritain.org.uk/agenda-2015/policy-review/policy-review/an-end-to-cold-homes-labour-senergy-efficiency-green-paper
Half a million free home energy reports a year

Summary
The Tories are wrongly claiming that this policy would require additional money.
They claim this would cost 60 million.
Reality
This would take place within existing programme budgets.
There is currently an obligation on energy companies in Great Britain to deliver energy
efficiency improvements. This is known as the Energy Company Obligation (ECO). Companies
recoup the costs via consumers bills it is not funded by Government. The annual budget is
currently estimated to be between 905 and 940 million a year.
Our Green Paper on energy efficiency proposes using a proportion of this levy to fund half a
million free personalised home energy reports a year. As this is funded by the existing levy on
energy companies, it does not require any spending from Government.
3.5 Based on the Governments current estimate of the cost of an energy efficiency assessment we
estimate that the cost of providing half a million free personalised home energy reports a year will be
approximately 80 million. We propose that this is paid for out of the existing budget of 940 million
funded through the Energy Company Obligation in Great Britain.
An End to Cold Homes - Labour's energy efficiency green paper, November 2014
http://www.yourbritain.org.uk/agenda-2015/policy-review/policy-review/an-end-to-cold-homes-labour-senergy-efficiency-green-paper
Establish an Energy Security Board

Summary
The Tories claim that Labours policy of establishing an Energy Security Board will cost 2m.
But the Board will bring together existing functions that are currently split between different
bodies.
According to the Tories, Labour has a policy to establish an Energy Security Board, which will
cost 2m.
Reality
This costing is wrong. As we have made clear, we will reform existing energy market
structures, replacing Ofgem with a new regulator and ending duplication between
DECC, Ofgem and the National Grid. The Energy Security Board will supply a clearer
institutional focus as part of this new framework, bringing together responsibilities that
are currently split between different bodies. Our manifesto will include no unfunded
commitments.
Currently no single institution has responsibility for establishing what our future capacity needs are and
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developing a strategy for meeting them. This is divided up between DECC, Ofgem and the systems
operator within the National Grid. Given the pressures on our existing generation capacity, there is an
urgent need to create a guiding mind that can coordinate the system operator and infrastructure planner
with the strategic direction set by the Secretary of State on a long term basis.
Powering Britain: One Nation Labours plan to reset the energy market, page 26,
http://www.yourbritain.org.uk/agenda-2015/policy-review/energy-green-paper
Department for Environment, Food and Rural Affairs

Ban food waste from landfill
Summary
The Tories are wrongly claiming that Labour has committed to banning food waste from landfill.
This is not our policy.
According to the Tories, Labour will be spending 477m a year on this.
Reality
This is not a manifesto commitment. This policy was discussed at an earlier stage of the
parliament, but was not agreed at the National Policy Forum last July and does not appear in
the NPF document.
Labour Party National Policy Forum Report 2014, July 2014
http://www.yourbritain.org.uk/uploads/editor/files/NPF_Annual_Report_2014.pdf
Department for Education
Requiring school and FE teachers to become qualified
Summary
The Tories claim that requiring school and FE teachers to become qualified would cost 177m
in 2015/16. Yet this costing is wrong, with the Government previously claiming that allowing
unqualified teachers into schools is unrelated to savings.
According to the Tories, Labour has a policy of requiring school and FE teachers to become
qualified, which will cost 177m in 2015/16.
Reality
This costing is wrong. We would manage this within existing budgets, just as the last Labour
Government did. Our policy would ensure that over time FE lecturers would train in greater
numbers, it is wrong to assume that it would be any specific number in 2015-16. On school
teachers, the Government has itself claimed that removing the requirement on teachers to get
qualified is unrelated to savings.

A spokeswoman for the Department for Education said: "It is simply not true to claim that this is
about depressing costs. This is about raising standards.
BBC News, 31 March 2013, http://www.bbc.co.uk/news/education-21988209
Since 1 September 2012, instructors can be employed permanently and there is no longer a
requirement for school leaders to consider a qualified teacher first when they feel that an
instructor would be better suited to the position. Since 27 July 2012, mainstream and alternate
provision academies can employ teaching staff without the automatic requirement for them to
have QTS. The funding agreements for all new academies states that they can employ teaching
staff whom they deem suitably qualified whether or not they have QTS. Existing academies can
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request that their funding agreements be changed to include the same freedom if they wish. Free
schools already had the flexibility to employ suitably qualified professionals who do not already
possess QTS.
David Laws, Hansard, 4 July 2013, c746W
http://www.theyworkforyou.com/wrans/?id=2013-0704c.162752.h&s=unqualified+teachers+proportion#g162752.q0

Director of School Standards in every local area
Summary
The Tories claim that our policy to create directors of schools standards would cost 68m in
2015/16. Yet this costing is wrong. We have been clear that our policy would take place within
existing resources, including replacing regional academy commissioners.
According to the Tories, Labour has a policy of establishing 150 directors of school standards
offices, which will cost 68m in 2015/16.
Reality
We have been clear that our policy would be funded from within existing resources, including
replacing the Governments regional academy commissioners.
This review recommends the abolition of the Regional School Commissioner post and structure.
A regional structure will not provide the local oversight and support needed to ensure standards
remain high. It would be inefficient to have different oversight structures for different types of
schools
David Blunkett report for Labours Policy Review, Review of education structures, functions and
the raising of standards for all, p52, April 2014
http://www.yourbritain.org.uk/uploads/editor/files/130514_Report_FINAL.pdf

This costing is also wrong as it assumes there will be 150 directors of school standards offices.
Labours policy has always been that local authorities can join together to appoint a shared
Director of School Standards across a local area or sub-region, to foster collaboration and raise
standards.
The presumption would be for Local Authorities to join together to appoint a shared DSS across
a local area or sub-region as this collaboration will help to raise standards and efficiencies whilst
maintaining the local link.
David Blunkett Review, 30 April 2014
http://www.yourbritain.org.uk/uploads/editor/files/Putting_Students_and_Parents_First.pdf
Rolling out London Challenge scheme across the country

Summary
The Tories claim that Labour has a policy to roll out the London Challenge scheme across the
country, which would cost 321m in 2015/16. But this is costing is wrong, as our policy to learn
lessons from the London Challenge scheme, involving introducing new Directors of Schools
Standards, will be within existing budgets.
According to the Tories, Labour has a policy of roll out the London Challenge scheme across
the country, which will cost 321m in 2015/16.
Reality
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This is wrong. Labour have made no unfunded spending commitments. We have set out that we
will learn the lessons from the London Challenge, which will involve introducing new Directors of
Schools Standards, but that will be within existing budgets.
Thats why Labour will introduce new and robust local oversight of all schools to raise standards.
Thats what new Directors of School Standards will bring. Labour will spread the success of our
London Challenge programme which transformed Londons secondary schools from being the
worst to the best performing in the space of a decade - Labour will deliver this focus on standards
across the country.
Tristram Hunt, 30 April 2014, http://press.labour.org.uk/post/84309430849/labour-will-introducenew-and-robust-local
Every secondary school and clusters of primary schools to have access to a qualified
school nurse
Summary
The Tories costing of Labours policy for every secondary school and cluster of primary schools
makes breathtaking assumptions about how many schools are served by one nurse. Labour
have promised no unfunded spending commitments, and this will be funded within existing
budgets.
According to the Tories, Labour has a policy for every secondary school and cluster of primary
schools to have access to a qualified school nurse, which will cost 40m in 2015/16.
Reality
This costing is wrong. It makes breathtaking assumptions about what a cluster of primary
schools is. Our policy involves schools collaborating so that they all have access to a school
nurse. We have been clear that this policy would take place within existing budgets
Department for International Development
Double 20 million spend to help countries increase their tax base
Restore funding to the International Labour Organisation
Extend the Work in Freedom programme to Qatar
Summary
The Tories are claiming Labours plan to double 20 million spend to help other countries
increase their tax base, restore funding to the ILO, and to extend the work in freedom
programme to Qatar are unfunded spending commitments but Labour has been clear that
these policies will be funded from within the existing DfID budget
According to the Tories, Labour policies of doubling 20 million spend to help other countries
increase their tax base, restoring funding to the ILO, and extending the work in freedom
programme to Qatar will cost 26 million in 2015/16.
Reality
These policies do not constitute new spending commitments. The sources the Tories have used
as evidence for these spending commitments explicitly state that these policies will be funded
from within existing budgets:
So I can confirm today that the next Labour government would restructure our existing support for
developing countries by first of all doubling the 20 million DFID currently gives to help governments build
up their own tax collecting capabilities.
Jim Murphy, Speech at ONE, 8 April 2014, http://press.labour.org.uk/post/82096135630/dfid-under-
18

labour-development-and-power-jim
The UK already works with the ILO on a programme called Work in Freedom to support 100,000 women
and girls from South Asia at risk of falling into forced labour. Id like ministers to stretch the existing DFID
budget to double that programme to cover just as many men who might end up on the construction sites
of Qatar.
Jim Murphy, PoliticsHome, 31 March 2014
Department for Transport

Public sector operator bidding for rail franchises
Summary
The Tories are wrongly claiming our policy to save money by reforming the process for rail
franchises will cost money.
Reality
Our rail reforms are there to save money. The East Coast Mainline returned millions to the
taxpayer. Our policy is to legislate to make it possible for such a public comparator to do so
again. Legislating to that affect will not cost a penny and is being done with a view to saving
money.
East Coast rail line returned 225.3m to the taxpayer in premiums and profits in 2013-14:
http://www.independent.co.uk/news/business/news/east-coast-rail-line-returns-more-profits-totaxpayers-9721486.html
Rail industry guiding mind
Summary
The Tories are wrongly claiming our policy to make railways more effective will cost money.
Reality
We would do this by working more effectively within existing bodies such as NR, DFT, ORR,
RDG, and not set up a new quango.
Create a single guiding mind for the railways, bringing Network Rail together with a new representative
passenger rail body to contract routes, co-ordinate services and skills in the industry, oversee stations,
fares and ticketing, and ensure customer satisfaction across the network.
NPF Annual Report 2014, page 45
Department of Health
GP access policies
Summary
The Tories are wrongly claiming that our policy is unfunded.
Their claim is that this policy will cost 1.4 billion.
Reality
Government ministers have previously tried to claim that GP access is satisfactory. If they are
19

now trying to claim that offering patients decent access will cost vast sums of money, this would
be a damning admission that standards have plummeted since 2010.
It is not true to say that Labour has not set aside resources to deliver this policy:
Our Time to Care Fund would raise 2.5 billion, including to fund 8,000 more GPs, which
would not only restore the number of GPs per capita back to 2010 levels, but would expand
capacity much further.
We will also invest a further 100m in GP practices specifically to help them deliver this
new standard, saved by cutting competition red tape and bureaucracy from David Camerons
new NHS market bureaucracy
It is not true to say that the policy would cost 1.4bn a year:
The costing is based on a range of inaccurate assumptions, such as assuming that

patients who do not express a preference will automatically want to see their GP quickly, or that
all same-day consultations are face-to-face
It also assumes no additional efficiencies are possible from organisational factors such as
improved booking systems even though some practices already deliver these standards on
existing resources
The costing is also inaccurate because it does not include potential savings to other
parts of the system which might arise as a result of hypothetical changes in patient behaviour
impacting where and when people access health and social care services. The reality is that
this policy will save money. Currently, millions of people are going to A&E because they cant
get a GP appointment, but an A&E attendance costs more than twice as much as a GP
appointment. Meanwhile, studies suggest that improving the number of patients seeing their
preferred GP could reduce emergency admissions, saving the NHS hundreds of millions of
pounds a year.
One week cancer diagnosis

Summary
The Tories are wrongly claiming that it our pledge to have a one-week guarantee for cancer
tests with results is unfunded.
Reality
Our policy is for cancer tests and results within a week, not for cancer diagnosis within a week
this is obviously not the same thing.
Weve been clear that this will be funded from the Time to Care Fund. As weve set out the Time
to Care Fund will be funded by a Mansion Tax, a tobacco levy and clamping down on tax
avoidance.
Free social care for critical cases
Summary
The Tories have tried to claim this will cost 200m-250m, but have failed to take into account
the fact that the savings on hospital care will outweigh the costs of homecare.
20

According to the Tories, this policy will cost 200m-250m a year

Reality
This is wrong this policy will save money. The whole point about end-of-life care in the home
is that it is cheaper than in hospital. For example, the Personal Social Services Research Unit
indicates a cost of 340 per day for inpatient specialist palliative care, while Marie Curie
estimates that a comprehensive package of community support costs 145 per day (with
homecare accounting for 27 of this). Source:
https://www.mariecurie.org.uk/globalassets/media/documents/commissioning-ourservices/publications/understanding-cost-end-life-care-different-settingspdf
Yet the HMT costing document admits the costings do not include any potential savings from
decreased hospital costs. It is therefore not a credible analysis of the actual costs of the policy.
Even though this policy will save money, to cover the up-front costs Labour has set aside
resources as part of our 2.5bn Time to Care Fund, both for extra homecare capacity, with
5,000 more FTE homecare workers.
Write to every household about the national health and care service
Summary
The Tories are wrongly claiming that this idea would cost money.
Reality
This is nonsense. In the 21st Century it does not cost additional money to email people or give
them communications when they use a GP surgery or attend a hospital.
Equal resources for mental and physical health, for adults and children
Summary
The Tories have wilfully misinterpreted Labours policy, which is about ensuring the health and
care system gives mental health the focus it deserves, rather than a point about programme
budgets.
The Tories are falsely claiming that Labours desire to see patients with mental health problems
have equal treatment and resources as patients with physical illnesses means we are
committed to increasing the mental health budget by 13bn a year by 2020, resulting in extra
spending of 2.7bn in 2015/16.
Reality
This is not Labours policy. Rather, our desire to see patients with mental health problems have
equal treatment and resources as patients with physical illnesses is a desire for parity of
esteem between mental health and physical health. Specifically, we want to ensure that mental
health problems are taken just as seriously as physical health problems and that services are
appropriate to meet mental health needs as they are to meet physical health needs. That kind of
equality is not a point about arithmetic equivalence of programme budgets.
Time to Care Fund
Summary
The Tories claim that no money will be raised for the Time to Care Fund in 2015/16.
21

The Tories claim that no money will be raised for the Time to Care Fund in 2015/16.
Reality
See the revenue raising section for detail of this annex. The Time to Care Fund will be funded
by a Mansion Tax, a tobacco levy and clamping down on tax avoidance. Ed Balls has set out
that Labours first budget will introduce a Mansion Tax to make raising money for the NHS a
priority.
Department for Work and Pensions
Youth Allowance
Summary
The Tories claim that Labours plan to ensure that 18-21 year olds who dont have the skills they
need for work would be in training rather than on benefits would cost an additional 1-1.4bn in
training costs (based on 2013-14 data). But young people in this age group are already eligible
for training, and the Tory costing document is clear that this would save money in benefit costs.
According to the Tories, Labours policy to replace JSA for 18-21 year olds with a Youth
Allowance for young people who dont have the skills they need to work, would result in an
additional 1-1.4bn in training costs, while saving 20m in benefit costs. They have not
provided a source for their estimate of training costs.
Reality
This policy would not cost money. It is about removing benefits from young people and using
the money that it saves to pay for training which will help them find work. The Treasury Costing
document is clear that this will save money in benefits.
All young people aged up to 24 are already entitled to a first full level three qualification, and
therefore funding should already be available to meet any additional training costs involved in
this policy.
Department for Business Innovation and Skills, Skills Funding Agency, Skills Funding Statement 20122015, December 2012, p.7.
Personal statement after Work Capability Assessment

Summary
The Tories claim that Labours plan to provide a personal statement to those undergoing Work
Capability Assessments would cost an additional 35-65m in 2015/16. But this is based on
providing a new assessment to each claimant, whereas Labour have clearly set out plans to
vary the assessment contract to ensure that this is part of the current system.
According to the Tories, Labours plan to provide a personal statement to those undergoing
Work Capability Assessments would require an additional assessment interview within the
process. They estimate the costs of this at between 35 and 65m in 2015/16.
Reality
This policy would be part of our wider reform of the WCA, including tougher financial penalties
for contractors who make wrong assessments. This approach would get more people into work
and save money, unlike the Governments approach which has cost money, with the
Government spending over 8.5 billion more than planned on ESA over the course of this
parliament.
Furthermore, in the Autumn Statement the Government had to commit an additional 30 million
22

in 2015 and 105 million in 2016-17 to the cost of carrying out ESA assessments.
We have been clear with the Government that we expect any changes to the assessment to be
delivered within the existing contract with Maximus and not to involve additional spending, and
wrote to Mark Harper, the Minister for Disabled People, to set this out on 22 October 2014.
Maths, English and IT skills assessment and compulsory follow up training for
jobseekers
Summary
The Tories claim that Labours plan to screen new JSA claimants for basic skills and refer them
to training where necessary will cost 513m in its first year. But funding is already provided to
train adults who lack basic skills, so this policy will not impose additional costs.
According to the Tories, Labours policy to assess jobseekers for basic English, Maths and IT
skills will cost 513m in its first year, based on assuming that every claimant will be screened
(rather than new claimants only), and all will take up training that requires new funding.
Reality
The funding for this training already exists. The Governments own Skills Funding Statement
sets out that funding is already available for:
1) adults in receipt of benefits where skills training will help them into work
2) English and maths skills: GCSE English and Maths qualifications; Functional English and maths
qualifications; and QCF English and maths units
Department for Business Innovation and Skills, Skills Funding Agency, Skills Funding Statement 20122015, December 2012, p.7.
Compulsory Jobs Guarantee for young people

Summary
The Tories claim that Labours plan to offer a paid six month job to all 18-24 year olds who have
claimed JSA for a year will cost 540m although bizarrely they state the cost of the policy in
2013-14. But this is based on the costs of a previous, different programme. House of Commons
Library figures show that the cost will be 315m.
According to the Tories, Labours compulsory Jobs Guarantee for young people will cost 540m
in 2013-14.
Reality
House of Commons Library figures show that the cost of the Compulsory Jobs Guarantee will
be 315 in 2015/16. The Tory figures are based on the cost of the Future Jobs Fund, a different
programme with higher costs. Our policy is fully funded by restrictions on pensions tax relief and
a bank bonus tax.
Compulsory Jobs Guarantee for over 25s
Summary
The Tories use 2013 costings to suggest that the Jobs Guarantee for over 25 year olds would
cost 1.5bn. But House of Commons Library costings show the cost of the Guarantee would be
just 1bn. The Jobs Guarantee is fully funded by changes to Pensions Tax Relief and the set up
costs are funded by the Bankers Bonus Tax.
23

According to the Tories, Labours compulsory Jobs Guarantee for over 25s will cost 1.5bn in
2013-14.
Reality
House of Commons Library figures show that the cost of the Compulsory Jobs Guarantee will
be 1bn in 2015/16. The Tory figures are based on the cost of the Future Jobs Fund, a different
programme with higher costs, were produced in 2013 and have not been updated since. Our
policy is fully funded by restrictions on pensions tax relief and a bank bonus tax.
Lower auto-enrolment threshold
Summary
The Tories claim that Labour would lower the threshold for auto-enrolement into a workplace
pension, at a cost of 3m in 2015/16.
The Tories claim we have committed to lowering the auto-enrolment threshold to 5,772 in
2015/16.
Reality
This is not a manifesto commitment. As we have set out very clearly, there will be no proposals
for borrowing in our manifesto. We have been clear that we will review how to deliver a potential
lowering of the auto enrolment thresholds, and fund any additional costs from within the social
security budget.
Labour wants to bring those 1.5 million workers back into workplace saving. We will consult with
employers, trade unions and pensions experts about the best way of doing it including whether any
change should be phased in, and how best to minimise administrative complexity. Any additional costs in
pension tax relief resulting from this move, which the House of Commons Library estimates to be in the
region of 20m a year, will be covered by savings found elsewhere in the social security budget. For
example, the reduced cost of appeals that we expect to result from the reforms to the Work Capability
Assessment that Kate Green and I set out last month.
Speech by Rachel Reeves, 29 May 2014
Abolish the Bedroom Tax

Summary
The Tories ignore the fact that our policy is fully funded.
The Tories claim that abolishing the Bedroom Tax would cost 560m.
Reality
We will abolish the Bedroom Tax. The Treasury costing for this policy is 465m in 2015/16. We
have set out a clear plan to fund this change by:
reversing George Osbornes recent tax cut for hedge funds announced in Budget 2013;
reversing George Osbornes shares for rights scheme which , has opened up a tax loophole,
and will lead to 1bn being lost to the Exchequer according to the Office for Budget
Responsibility ; and
tackling disguised employment in the construction industry.
Introduce a contributory system of JSA
Summary
The Tories claim that Labours plan to pay a higher rate of JSA, funded by restricting entitlement
to those who have worked for longer would not be cost neutral. But they have examined only a
limited range of options for how to deliver this change.
24


According to the Tories, Labours policy to pay a higher rate of JSA to those who have worked
for longer could not be delivered in a way that was cost neutral.
Reality
We have been clear that there will be no proposals for borrowing in our manifesto, and that we
will deliver this policy in a cost-neutral fashion:
Thats why as one example, the next Labour government will change the way Job Seekers Allowance
works. To make sure that someone who has been working for years and years, paying in to the system,
gets more help if they lose their job, than someone who has been working for just a couple of years. And
we will pay for it not by spending more money in social security. But by extending the length of time
people need to have worked to qualify.
Ed Miliband speech to IPPR, June 19th 2014
Bring back care first

Summary
The Tories have used a quote from a backbench peer which takes Care First as an illustrative
example of a youth training scheme to claim that we want to reinstate the policy. This is clearly
ludicrous.
The Tories quote Lord Rosser, a backbench Labour Peer in Hansard on the 4July 2014 saying
that We need proper training programmes to help the young unemployed get into the sectors
that are recruiting most from abroad programmes such as Care First which the Government
abolished as evidence that Labour would Bring back Care First at a cost of 38m.
Reality
This is not our policy.
HM Treasury
Introduce a 10p starting rate of incomes tax
Summary
The Tories say that the Labour policy of introducing a lower 10p rate of income tax, funded by
scrapping the Marriage Tax Allowance, could not be done in 2015-16 because the tax year is
already underway.
According to the Tories, this could not be done in 2015-16 because the tax year is already
underway.
Reality
This is true. Labour has not claimed that it would be introduced in 2015-16. It will be fully funded
by reversing the Marriage Tax Allowance.
Cut business rates by 1 per cent in 2015-16 and limit the rise to 14/15 levels in 2016-17
Summary
The Tories say that Labour's policy of cutting business rates and then freezing them, funded by
not going ahead with a further cut to Corporation Tax for large businesses, could not be done in
2015-16 because the tax year would already be underway.
The Tories say that Labour's policy of cutting business rates and then freezing them could not
be done in 2015-16 because the tax year would already be underway.
25

Reality
Labour will fully fund the cut and then freeze in business rates by not going ahead with the
further cut in Corporation Tax for large businesses which the Tories are planning. The Tories
are accepting that cutting and then freezing business rates could be funded in this way.
Increase credit union funding
Summary
This policy would extend the levies on the profits of pay day lenders to double the level of
Government funding for low cost alternatives such as credit unions.
The Tories say this policy will cost 13m in 2015-16.
Reality
This policy is fully funded. Page 69 of the Tory dossier sets out details of how Labour will
increase levies on the profits of payday lenders to pay for this.
Labour has said we will extend the levies on the profits of payday lenders in order to double the
level of funding for low cost alternatives such as credit unions.
We would extend the levies on the profits of pay day lenders to double the level of Government funding
for low cost alternatives such as credit unions.
Ed Miliband, Sun on Sunday, 10 November 2013
Details of the rates at which the levy would be imposed on the profits of companies such as Wonga have
not yet been announced, but Labour said it aimed to raise enough cash to double the 13m currently
provided by the government each year to fund the expansion of credit unions.
The Guardian, 17 October 2013
Establish a National Infrastructure Commission

Summary
This policy would establish an independent National Infrastructure Commission to identify the
UKs long-term infrastructure needs,
The Tories claim the policy will cost 2m in 2015-16.
Reality
The Tories have no official Treasury costing for this policy they have plucked the number out
of thin air, assuming that it will have the same budget as the Office for Budget Responsibility.
There are existing government bodies such as Infrastructure UK, many of whose activities could
duplicate the work of the Commission.
Home Office
1,000 new border staff
Summary
The Tories are claiming our policy of 1,000 new border staff would cost 45m
According to the Tories, Labours policy would cost 45m of new spending
Reality
Labour will reform arrangements with non-visa countries, charging a small amount as the United
26

States ESTA programme does, so we can provide additional resources for up to 1,000 more
border force and enforcement staff.
National Refuge Fund
Summary
The Government say Labour has a policy of spending an additional 3m in 2015/16 on
establishing a National Refuge Fund.
The Tories are claiming we would spend an additional 3m on funding refuges on top of the
10m they announced in November.
Reality
Labour called for additional funding for refuges in September 2014. Subsequently the
Government announced additional funding in November 2014. It is ludicrous to claim that our
call for additional funding is on top of something that had not yet been announced when we
called for it.
Domestic and Sexual Violence Commissioner
Summary
The Government claim our policy of establishing a Domestic and Sexual Violence
Commissioner to tackle violence against women and girls would be new spending.
According to the Tories, this would cost 2million.
Reality
Labour has said we would want to consult on the structure of a new Commissioner and that it
will be funded from within existing Home Office budgets.
Tackling violence against women must be seen in the context of the large costs of not tackling
domestic and sexual violence. In 2009, Sylvia Walby estimated the cost of domestic violence (to
services, economic output and human and emotional cost) to be around 16 billion. As we have
set out very clearly, there will be no proposals for borrowing in our manifesto.
Ministry of Justice
Reforms to 18-20 justice system
Summary
The Tories are wrongly claiming our policy is to extend the youth justice board.
Reality
This is not a manifesto commitment. As we have set out very clearly, there will be no proposals
for borrowing in our manifesto.
This policy was not agreed at the National Policy Forum last July and does not appear in the
NPF document.
Labour Party National Policy Forum Report 2014, July 2014

27

Our commitment instead is to consider how we can extend cooperation within the youth justice
system, as set out in the Partys policy programme agreed at Labour Party Conference.
Labour would build a justice system that works to effectively punish and reform by taking a more tailored
approach to dealing with offenders. In particular, we will seek to learn from and extend the successful
model of cooperation within youth justice, with agencies working together in order to reduce youth
offending.
Labour Party National Policy Forum Report 2014, July 2014, p.66
Womens Justice Board

Summary
The Tories claim that Labour would introduce a Womens Justice Board costing 255m is
based on a misrepresentation of Labour policy.
According to the Tories this would cost exactly the same as the Youth Justice Board
Reality
Labour has said we will look at existing bodies to see how we can better deal with the needs of
women in the criminal justice system. We have not made any unfunded spending commitments.
End early release on default sentences for those who refuse to pay back profits from
crime
Summary
The Tories are wrongly claiming that this is still a Labour spending commitment when in fact we
called for it, and it was then introduced by the Government.
According to the Tories, Labour will be spending 28m a year on extending the youth justice
board and youth offending teams.
Reality
Labour called for this policy to be introduced in May 2014.
Many criminals serve only three or four years of the single sentence allowed for refusing to give the
money back. Thats not right. Its time to change the law. So we will put an end to criminals being let out
early after refusing to pay. They must pay up or serve their sentence.
Yvette Cooper speech, 20 May 2014
http://press.labour.org.uk/post/86319909114/yvette-cooper-speech-to-the-police-federation
The Government took our advice and is introducing such measures in the Serious Crime Bill,
http://services.parliament.uk/bills/2014-15/seriouscrime/documents.html
Employment Tribunal Fees
Summary
The Conservatives are claiming it is our policy to use new spending to reverse the introduction
of employment tribunal fees, based on a misrepresentation of Labours policy.
According to the Tories we would reverse the introduction of employment tribunal fees
Reality:
Labour is committed to reforming the Employment Tribunal System, and will consult on how that
is best done. We have not committed to any particular reform model and we will not make any
28

unfunded spending commitments.
29

Revenue Raisers
Cabinet Office
Sale of Cabinet Office property portfolios
Summary
Cabinet Office property portfolios.
The Tory document sets out Labour proposals.
Reality
The document accepts Labour is consulting on these issues, quoting from a Labour Party press
release which says Labour will commission value for money reviews.
Department for Communities and Local Government
Transformation Challenge Award
Summary
The Conservatives are arguing the reduction in the Transformation Challenge Award would not
lead to income being generated in 2015-16 because opening up public services to competition
can result in savings.
Labours policy of reducing the Transformation Challenge Award, which will cost not raise any
revenue in 2015/16.
Reality
The Conservative document does not attempt to challenge that savings can be made on this
programme, instead simply making general claims about public service provision. In doing so it
draws on a Government report from 2008 which does not address the Labour statement quoted,
which is from December 2014.
Annual efficiency savings of 500 million from 2015/16
Summary
Conservatives are arguing the local government savings will not be made, based on misleading
claims about Labour policy.
Conservatives are arguing the 500m efficiency savings announced would not lead to any
saving in 2015-16.
Reality
The Tory claim is incomprehensible. They claim it is Labours policy to make savings in 2016/17
and then say this is disproved by the following sentence: Labour have said this wont raise any
money in 2015/16.
Department of Energy and Climate Change
Cut energy efficiency funding
Summary
See section on home energy reports.
30

Department of Health
Scrapping competition laws
Summary
See section on GP Access.
HM Treasury
Restricting the Quoted Eurobond Exemption
Summary
The Tories say that closing the Quoted Eurobond Exemption will raise a negligible amount. This
is wrong because they are assuming that Corporation Tax will still be avoided through other
routes after the loophole is closed. We will ensure that other tax avoidance routes cannot be
used.
According to the Tories, Labour's policy of restricting the Eurobond Exemption will raise a
negligible amount of money.
Reality
This costing is wrong. Tory advisers have assumed that companies currently avoiding
Corporation Tax through the Eurobonds loophole will continue to do so through other routes.
We will ensure that other tax avoidance routes cannot be used to avoid Corporation Tax which
is due.
1 per cent child benefit increase in 2016-17
Summary
The Tories say that against a coalition government baseline this raises no revenue in 2015-16
as it only applies in 2016-17 and against a Tory baseline it costs money.
According to the Tories, Labour has a policy of a 1 per cent child benefit increase but that it will
raise no money.
Reality
This costing admits that it raises money against the Government's current plans.
Bank Payroll Tax

Summary
The Tories claim a repeat of the bank bonus tax will not raise any money but this is not based
on a formal Treasury costing.
According to the Tories, Labours policy to repeat the bank bonus tax will not raise any money.
Reality
The Tories costing is not based on an official Treasury costing, but simply a quote from Alistair
Darling in 2010.
The bank bonus tax in 2010 raised 3.4 billion. (HMRC, Table 1, p.6,
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/348227/PAYE_an
d_corporate_tax_receipts_from_the_banking_sector_2014.pdf)
A March 2014 comparison of individual bank bonuses in 2014 compared to 2010 indicated that
31

the bank bonus pool had by 38%. If the revenue from the bank bonus tax reduced by a similar
amount it would raise 2.1 billion. A conservative estimate for how much the bank bonus tax
would raise would therefore be 1.2-1.7 billion.
Umbrella companies measure
Summary
Labour will stop umbrella companies being used to avoid tax and NICs. The Tories claim they
are already doing this, but they are only consulting and have not yet announced any measures
or scored revenue from them.
According to the Tories, Labour has a policy of tackling tax avoidance by umbrella companies
but that it will raise no revenue.
Reality
This costing is wrong. The Government are only consulting on measures. They have not
announced any changes and have not raised any revenue. Labour will bring in measures to
raise revenue.
New tax on family homes
Summary
The Tories claim that this is a tax on family homes, but no properties worth less than 2m will be
affected. They claim it will raise no revenue in 2015-16
According to the Tories, Labour has a policy of introducing a Mansion Tax but that it will raise no
revenue in 2015-16.
Reality
This costing is wrong. Tory advisers have assumed that it will not be implemented in the first
year of a Labour Government but that the revenue raised will be spent in 2015/16. But we
have said we will fast track the implementation of the Mansion Tax and are looking at the
practicalities of ensuring that the most expensive properties starting to pay it in 2015-16. We
have also been clear that we will not spend the money before it is raised.
I would like to see that revenue coming in in the first year of a Labour government, before the
end of the financial year. We will have to see the practicalities. Ed Balls, 27 December
2014, http://www.independent.co.uk/news/uk/politics/ed-balls-labour-government-wouldfasttrack-the-mansion-tax-9941165.html
Abolish intermediary relief form stamp duty on shares
Summary
Tories are saying that this will not raise any money in 2015-16, and it would only be partially
raised in 2016-17.
According to the Tories, Labour has a policy of clamping down on tax avoidance by hedge
funds, but that it will not raise any revenue in 2015-16.
Reality
This costing is wrong. Labour will clamp down on this tax avoidance as soon as possible in the
next Parliament and we will not spend the money before it is raised.
Fee on tobacco companies
Summary
32

The Tories are saying that the Government is already taking action on this and that Labour has
confirmed that no money will be raised in 2015-16. This is wrong because they are only
consulting and they have not introduced a levy.
According to the Tories, Labour's policy of introducing a levy on tobacco companies will not
raise any revenue in 2015-16.
Reality
This costing is wrong. The Government are only consulting on introducing a levy, but have not
introduced one and have not raised any revenue. Labour will introduce a levy as soon as
possible in the next Parliament.
Tackling false self-employment in construction industries
Summary
The Tories say that they have already taken action on this, but evidence from the construction
industry is that false self-employment is still a problem.
According to the Tories, Labour has a policy of tackling false self-employment in the
construction industry, but that this will not raise any revenue.
Reality
This costing is wrong and those working in the construction industry say that there is an ongoing
problem with false self-employment.
GAAR Penalties
Summary
The Tories say that Labour plans to bring in penalties for the General Anti-Abuse Rule will not
raise any revenue because the Government is already taking action on this.
According to the Tories, Labour's policy of introducing GAAR penalties will not raise any
revenue because the Government is already taking action.
Reality
This costing is wrong. The Government is only consulting on whether to bring in penalties and is
not raising any revenue. Labour will bring in a penalty regime.
Dormant company anti-avoidance measures
Summary
The Tories say that HMRC already identifies companies which should have filed returns, and
paid tax, but have not done so. But HMRC's procedures are not effective enough and Labour
will require annual confirmation of dormancy.
According to the Tories, Labour has a policy of tackling dormant companies but that it will not
raise any revenue.
Reality
This is wrong because HMRC's current procedures on not effective enough to identify dormant
companies which are being used to evade tax.
Raise additional rate of income tax from 45p to 50p
Summary
33

The Tories say that restoring the 50p rate of income tax would not raise any revenue because it
would be offset by reductions in VAT. But this is wrong because HMRC admit that cutting the
50p rate gave a tax cut of 3bn to the top one per cent.
According to the Tories, Labour's policy of restoring the 50p rate of income tax will not raise any
revenue because it would be offset by reductions in VAT.
Reality
This costing is wrong. HMRC admit that cutting the 50p rate gave a tax cut of 3bn to the top
one per cent.
Restricting Pension Tax Relief for Higher Earners
Summary
Labour would restrict the rate of pension tax relief for people earning more than 150,000 each
year to the same rate as that received by basic rate taxpayers (20 per cent).
According to the Tories, this will raise more than 1.3bn every year, with the revenue coming in
from 2018-19 because Tory advisers have assumed that it will not come into force until 201718.
Reality
This costing shows that restricting pension tax relief will more than pay for the ongoing costs of
the Jobs Guarantee, while the start up costs of the Guarantee will be covered by the Bankers
Bonus Tax.
This costing raises more than we had expected and we will ensure that the revenue comes in as
soon as possible.
Raise corporation tax by one per cent
Summary
The Tories say that Labour's policy of cutting business rates and then freezing them, funded by
not going ahead with a further cut to Corporation Tax for large businesses, could not be done in
2015-16 because the tax year would already be underway.
The Tories say that Labour's policy of cutting business rates and then freezing them could not
be done in 2015-16 because the tax year would already be underway.
Reality
Labour will fully fund the cut and then freeze in business rates by not going ahead with the
further cut in Corporation Tax for large businesses which the Tories are planning. The Tories
are accepting that cutting and then freezing business rates could be funded in this way.
Abolish the transferable tax allowances for married couples and civil partners
Summary
The Tories say that the Labour policy of introducing a lower 10p rate of income tax, funded by
scrapping the Marriage Tax Allowance, could not be done in 2015-16 because the tax year is
already underway.
According to the Tories, this could not be done in 2015-16 because the tax year is already
underway.
Reality
This is true. Labour has not claimed that it would be introduced in 2015-16. It will be fully funded
34

by reversing the Marriage Tax Allowance.

Levy on payday lenders
Summary
This policy would place a levy on the profits of payday lenders. The Tories accept it
would raise money.
The Tories accept this policy will raise 13m.
Reality
The Tories accept this policy will raise 13m.
Home Office
Mandate national procurement in police

Summary
Labours plans for streamlining criminal justice procurement
According to the Tories, there is no scope for Labour to make a savings in this area.
Reality
The Conservative claims are based on assertions and misrepresentations of Labours policy.
Labours proposals are based on the Stevens Review of Policing, published in November 2013.
These proposals also look to deliver maximum value for money for the taxpayer by streamlining
criminal justice procurement, which could save an estimated 60 million by 2016/17 if
implemented - funds that could be ploughed back into frontline policing. There is nothing in the
Conservative claims which deals directly with these proposals
Abolish Police and Crime Commissioners
Summary
Labour will abolish PCCs.
Labour cannot make savings.
Reality
The Conservative dossier does not challenge the assumption that there are savings to be made
in this area. Labour has set out, in the Stevens Review of Policing, plans for savings in the
criminal justice system.
Full cost recovery of gun licenses
Summary
Labour will address the subsidy on gun licenses.
The Tories are already consulting on the subsidy.
Reality
The Conservatives have not put in to place a system to end the subsidy and the document
admits that they are only consulting on the measures, thus accepting there are savings to be
made.
35

10 fee on visa-waivers from all non-visa countries

Summary
See section on border force.
Printed and promoted by Iain McNicol, General Secretary, the Labour Party, on behalf of the Labour Party, both at One Brewers Green, London SW1H 0RH.
36

The Tories' Smear Analysis of Labour Party Policy

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The Tories' Smear Analysis of Labour Party Policy

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THE TORIES

5th January 2015

Errors and smears

Making misleading assumptions about Labour policies

Tory numbers do not add up

Unfunded tax promises

Unfunded NHS promises

In the 2014 Autumn Statement, George Osborne claimed to be spending an

HM Treasury, Autumn Statement 2014, December 2014, p.65

Labours fully funded plans

But George Osborne himself refuses to agree to independent audits.

When pressed on this issue at the Conservative Press Conference, by journalists

Annex: Dossier error details

Major expansion of University Technical Colleges

Restore Funding for TUC Education / UnionLearn

Department for Energy and Climate Change

Half a million free home energy reports a year

Establish an Energy Security Board

Department for Environment, Food and Rural Affairs

Rolling out London Challenge scheme across the country

Department for Transport

The costing is based on a range of inaccurate assumptions, such as assuming that

One week cancer diagnosis

According to the Tories, this policy will cost 200m-250m a year

Personal statement after Work Capability Assessment

Compulsory Jobs Guarantee for young people

Abolish the Bedroom Tax

Tory claim about our policy

Bring back care first

Establish a National Infrastructure Commission

Labour Party National Policy Forum Report 2014, July 2014

Womens Justice Board

unfunded spending commitments.

Bank Payroll Tax

by reversing the Marriage Tax Allowance.

Mandate national procurement in police

10 fee on visa-waivers from all non-visa countries

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