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Rebuild our Public Services

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Universal public services, collectively provided through general taxation and free at the point of use for all, are how we guarantee the right to a good life.

Public services do more than make sure everyone has the basics. They create shared experiences and strengthen social bonds. They make our lives richer and more fulfilling.

A decade of Tory cuts has pushed our public services to breaking point. Labour offers real change – we will make Britain’s public services the best and most extensive in the world.

We will pay for this by creating a fairer taxation system, asking for a little more from those with the broadest shoulders, and making sure that everyone pays what they owe.

We will reverse some of the Tories’ cuts to corporation tax while keeping rates lower than in 2010.

We’ll ask those who earn more than £80,000 a year to pay a little more income tax, while freezing National Insurance and income tax rates for everyone else.

We will end the unfairness that sees income from wealth taxed at lower rates than income from work. VAT is a regressive tax that hits the poorest hardest and we guarantee no increases in VAT.

We will launch the biggest ever crackdown on tax avoidance and evasion and reform the inefficient system of tax reliefs.

Public services must also be accountable. Labour will end the current presumption in favour of outsourcing public services and introduce a presumption in favour of insourcing. And we will stop the public getting ripped off by taking back all PFI contracts over time.

When services are procured from the private sector, companies will be assessed against best practice public service criteria, including provisions for collective bargaining, fair wage clauses, adherence to environmental standards, effective equalities policies, full tax compliance and application of pay ratios. In the public sector, we will enforce maximum pay ratios of 20:1.

We will repair the damage the Tories have done to our social fabric, with a £150 billion Social Transformation

Fund to replace, upgrade and expand our schools, hospitals, care homes and council houses. Public buildings will be modernised to ensure a reduction in their carbon footprint.

Our most valuable assets are the dedicated people who work in our public services, but under this government their pay has been cut in real terms. Labour will restore public sector pay to at least pre-financial crisis levels (in real terms), by delivering year-on-year above-inflation pay rises, starting with a 5% increase, to reward and retain the people who do so much for us all.


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