UKIP have begun to release their policies ahead of next year’s elections as they attempt to avoid the shambles brought by their previous manifesto, branded by party leader Nigel Farage as “drivel”.
Farage has announced a policy that would radically alter the UK’s tax system. He has suggested that the top rate of tax should be 40p and paid by those earning £45,000 or more. This will mean that no extra tax will be levied against those earning huge sums. Currently those earning £150k annually pay an additional rate.
The UKIP leader has attempted to portray this as a “blue collar platform” by saying he would remove income tax for the lower earners in society (although National Insurance would remain).
This is a big change from their previous plans to set a flat tax of 31% as a mix of income tax and national insurance.
Obviously these policies would mean government income would drop significantly, with some experts suggesting £20bn will be lost. To offset this massive cuts in Government expenditure would need to be made or big rises in tax introduced elsewhere.
UKIP have also outlined plans to combat the imaginary problem of migrants coming to the country to claim benefits. Despite research that proves migrants contribute positively to the economy, Farage has risked alienating foreign workers by saying they would not be able to claim benefits until they have paid income tax and NI for five years.
Farage said: “The most important thing is raising the threshold at which people start to pay tax. If you do that whilst at the same time controlling the over-supply of labour that’s coming into Britain from many parts of Europe, not only do you get people back into work, you make it worthwhile for people to get off benefits.”