How much will the Labour manifesto actually cost?

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How much will the Labour manifesto actually cost?

There’s lots of big Labour pledges for voters to consider, but how much will they cost? (Picture: Getty)

Jeremy Corbyn has unveiled his General Election manifesto with a radical pledge to invest in public services, tackle climate change and renationalise key utilities.

The Labour leader said he was offering ‘real change’ as he vowed to bring mail, rail, water and energy back into public ownership and make broadband free for all homes and businesses by 2030.

Mr Corbyn says his plans are ‘fully costed’ but his manifesto has already been described as ‘extreme and unrealistic’ by fact-checkers, while Boris Johnson said it had no ‘economic credibility’.

But how much will it actually cost and what are the party’s main policies?


Britain's Labour Party leader Jeremy Corbyn listens to staff as he visits Crawley Hospital in Crawley, south of London, on October 30, 2019 ahead of the launch of a general election campaign. - Britain's political leaders tested their election pitches today after parliament backed Prime Minister Boris Johnson's bid for a pre-Christmas poll aimed at breaking the years-long Brexit impasse. (Photo by Tolga AKMEN / AFP) (Photo by TOLGA AKMEN/AFP via Getty Images)

Jeremy Corbyn wants to spend 2.3 per cent more on the NHS than the current Government (Picture: AFP/Getty)

Labour wants to increase the NHS budget by 4.3 per cent on average per year and put a ‘lifetime cap’ on the amount people have to pay for social care.

This budget rise for the NHS would see Labour spend 2.3 per cent more than the current Government.

The Institute for Fiscal Studies (IFS) says spending under Labour would increase by an additional £3.2 billion in real terms over four years, reaching £143.5 billion in 2023/24.

An extra £1.6 billion a year is being promised to ensure new standards for mental health, with another £2 billion set aside to modernise hospital facilities.

Other measures include free personal care for those aged over 65, free annual dental check-ups and free prescriptions in England, while carers can also expect an increase in the weekly carer’s allowance.

There will also be an end to all hospital car park charges for patients, staff and visitors.


LONDON, ENGLAND - APRIL 19: Labour leader Jeremy Corbyn (R) and Mayor of London Sadiq Khan visit the Churchill Gardens Estate in Westminster on April 19, 2018 in London, England. The visit was following the launch of the Labour party's Social Housing review and Green Paper consultation which sets out their ambition to build one million affordable homes over a ten year period, including the biggest council housebuilding programme for over 30 years. (Photo by Jeff J Mitchell/Getty Images)

Labour says they will build 150,000 homes a year (Picture: Getty)

Mr Corbyn has promised to spend £75 billion on affordable homes – the biggest council house building programme since the Second World War.

This will see 150,000 new homes a year, with 100,000 of them built by councils, and 50,000 classed as ‘genuinely affordable’.

The investment is set to come out of the party’s £150 billion ‘social transformation fund’ that would pay towards upgrades for schools and hospitals, as well as moving the investment arm of the Treasury to the north of England.

A £1 billion fire safety fund would be introduced to fit sprinklers and other safety measures in council and housing association tower blocks to avoid a repeat of the Grenfell Tower tragedy.

Much of the money would be allocated over a five-year period and half of the pot would go towards paying for the proposed house-building boom.


Swedish climate activist Greta Thunberg meets leaders of the UK political parties at the House of Commons in Westminster, London including Green Party leader Caroline Lucas (left) and Labour leader Jeremy Corbyn (right), a chair was reserved for Theresa May, to discuss the need for cross-party action to address the climate crisis.

A £250 billion ‘green transformation fund’ is being promised (Picture: PA)

Labour has downgraded its promise to reach ‘net zero’ emissions by 2030, to delivering a ‘substantial majority’ of emissions cuts by 2030.

The manifesto promises to generate 90 per cent of electricity and 50 per cent of heat from renewable and low-carbon sources over the next 11 years.

Mr Corbyn says it will be backed by a £250 billion ‘green transformation fund’ to shift the UK towards a green economy, funding renewables, low-carbon energy and transport, wildlife and environmental restoration.

The green fund would include providing loans for people to buy electric cars, investment in wind farms and grants for home insulation, while there would be an ‘immediate and permanent’ ban on fracking.

A windfall tax on oil companies will help cover the costs of climate damage, the party has claimed.

The social and green transformation funds combined would take borrowing to an extra £55 billion per year, on top of the current Government levels of £47 billion of borrowing in 2019/20.


Labour leader Jeremy Corbyn meets students from Stretford High School, Manchester after he launched his party's local election campaign.

The Labour Party is promising billions for schools (Picture: PA)

The party plans to increase school spending by £10.5 billion over three years while scrapping tuition fees at a cost of £7.2 billion.

It comes after tuition fees were raised to £9,000 per year in 2012, which caused a huge backlash and a series of student protests.

Labour is also planning to give all two, three and four-year-olds 30 hours of free childcare a week by the end of the Parliament at an estimated cost of £5.6 billion a year.

The IFS said Labour’s proposals would mean a 15 per cent real terms increase in per pupil funding over the next three years.


EMBARGOED TO 0001 MONDAY OCTOBER 7 File photo dated 17/02/16 of a Job Centre Plus in London. One in five unemployed people are over the age of 50, underlying the need for support for older jobseekers, according to a new report. PA Photo. Issue date: Monday October 7, 2019. An analysis of official figures by Rest Less, which offers job advice to the over-50s, indicated that 50 to 64-year-olds are more likely than any other age group to be out of work for at least two years. See PA story INDUSTRY Age. Photo credit should read: Philip Toscano/PA Wire

(Picture: PA)

The so-called ‘green industrial revolution’ is designed to create one million jobs and another 800,000 apprenticeships in the UK.

A commitment has been made to introduce a ‘real living wage’ of at least £10-an-hour while ending zero hours contracts and strengthening trade union rights.

Public sector workers would also see an immediate 5 per cent boost in pay, with year-on-year above-inflation pay rises to follow.

The total cost of Labour benefit changes is estimated by the party to cost £8.4 billion a year.


Labour leader Jeremy Corbyn gets on a train at Liverpool Lime Street Station, Liverpool, where he will be begin the route of Crossrail for the North, changing at Manchester Victoria, Leeds and arriving in Hull.

Jeremy Corbyn wants to renationalise the key utilities (Picture: PA)

Mr Corbyn has vowed to stop the ‘great rip off’ by bringing rail, mail, water and energy into public ownership.

Labour has not said how much it will cost to renationalise the key utilities but according to analysis by the CBI, the estimated up-front cost will start at £196 billion.

The manifesto also fails to cost a pledge to nationalise broadband to deliver free superfast internet to every house and business in the country.

Although the cost of acquiring BT Openreach, the company currently tasked with rolling out high-speed broadband across the UK, has previously been estimated at £20 billion.


Mandatory Credit: Photo by James Veysey/REX (10481792m) Jeremy Corbyn Labour Party General Election manifesto launch, Birmingham, UK - 21 Nov 2019

Labour tax plans will go after the wealthy (Picture: James Veysey/REX)

Labour will introduce 12 tax changes to raise an additional £83 billion a year to fund its spending commitments.

Corporation tax will rise to 26 per cent to raise £24 billion, and a new financial transactions tax will raise £8.8 billion.

Labour say they will also raise £14 billion with a tax on capital gains and dividends in line with income tax rates.

A second homes tax, which will be equivalent to 200 per cent of the property’s council tax bill, will be introduced, while Conservative cuts to inheritance tax will be reversed.

Additional income tax paid by those earning more than £80,000 and a hit on those classified as ‘super-rich’ – earners taking home more than £125,000 – would rake in £5.4 billion.

Other incentives, such as hammering down on tax evasion, and imposing VAT on private schools, would bring that pot up to the required £83 billion, according to Shadow Chancellor John McDonnell’s workings.

IFS director Paul Johnson said it’s ‘quite doubtful’ Labour would be able to raise around £80 billion from tax rises.

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