Labour proposes CGT rise to combat poverty


The last Government has polarised the public financially to such an extent that it will take a monumental shift to close the gap between rich and poor, the Labour Party alleged today.

Poverty can only be tackled by effective redistribution of wealth via taxation measures, the party said in the launch of its social exclusion policy this morning.

Mr Derek McDowell, Labour’s finance spokesman, said they would raise Capital Gains Tax to fund the proposals.

His party would ensure the minimum wage will not be subject to income tax and he also said they would link social welfare payments to wage increases.

Free GP services for all, an increase of pensions to 200 per week and an end to the means test for carers are also promised.

Labour is also proposing to embark on a social and affordable housing programme to "redress five years of neglect".