IT was not Diane Abbott’s best performance on her now infamous LBC interview, as it became abundantly clear that Labour’s plans to fund 10,000 extra police officers out of increases in Capital Gains Tax (CGT) had been given very little thought by anyone.
This is not unlike their pledges on NHS funding or reducing class sizes, on which nobody in the Labour Party is able to put a number, other than a generic soundbite about cracking down on tax avoidance.
But the Conservative Party’s response was disappointing too. Home Secretary Amber Rudd simply said that that ‘they’ve spent that money already’. There was no attempt to slam Labour over calling for tax rises, or to consider the benefits of lowering or simplifying CGT in and of itself, such as the positive impact on the level of savings and investment as well as reducing distortion in the capital markets created by the influence of tax advantages on asset prices.