Labour party announce plans to increase corporation tax

The Labour party will increase the rate of corporation tax to boost funding for schools, it has been announced.

The Labour leader Jeremy Corbyn said he would increase corporation tax from 19 per cent to 26 per cent by the end of the decade, effectively reversing the Conservative party’s cuts.

The additional funding – amounting to around £20 billion – would in part go towards the National Education Service, he said, which would see class sizes for five-to-seven-year-olds drop below 30.

He vowed to “transform our schools and education system to ensure a future for the many not the few” by reversing funding cuts since 2010.

Under his plans, school children would also be entitled to free school meals, the education maintenance allowance and university grants for students would be reinstated, and fees for adult learners would be scrapped.

Mr Corbyn said: “People of all ages are being held back by a lack of funding for education, and this in turn is holding back the economy by depriving industry of the untapped talent of thousands of people.”

The Labour leader has previously announced that he will impose VAT on private schools to better fund free schools.

The Chancellor Philip Hammond said corporate tax rates would drop to 17 per cent by 2020 under a conservative Government.