Labour matches Tory pledges

Press, 9 April 1979, Page 9

Labour matches Tory pledges

NZPA London The British Labour Party has risen to Mrs Thatcher’s tax-cutting election challenge with a promise of its own to cut income tax and to reduce the number of people who have to pay it. The pledge comes in the party’s manifesto published under the slogan: “The Labour way is the better way.” It is one of the main planks of the platform on which the party will fight the election. The campaign begins officially this week. The manifesto declares: •‘Labour will continue to reduce the burden of income tax, and raise the threshold below which people pay no income tax.”

And it goes on: “The tax system must be fair and seen to be so, we will mount an all-out attack on tax evasion, everybody must make their fair contribution to the country’s finances. “In the next Parliament, we shall introduce an annual wealth tax on the small minority of rich people whose total net personal wealth exceeds 150,000 sterling ($294,000).” There are no plans in the manifesto for sweeping new nationalisation schemes. This shows that the Prime Minister (Mr James Callaghan), who regards further

major nationalisation as an electoral albatross, won the argument against the Leftwing in the Cabinet and the party’s National Executive Committee. The manifesto rejects charges of Left-wing extremism and declares: “The Labour Party is a democratic socialist party and proud of it.” It also claims a good record for the Labour Government and says: “Over the past five years the Labour Government has laid the foundations of a stronger economy.” On inflation the manifesto says: “With the wholehearted backing of the trade union movement we have set ourselves a new target — to get inflation down to 5 per cent by 1982.” To carry out its programme if it retains power Labour will, among other things: Strengthen the Price Commission, in contrast to the Tories who threaten its abolition; seek radical reform of the Common Market agricultural policy; set up a new body to ensure Public Service workers, including the low-paid, receive wages comparable to those in the private sector. A strike at the beginning of the year by low paid “dirty jobs” workers in the Public Service is believed to have badly damaged Labour’s poll chances.