Front runner Jeremy Corbyn, with a recent YouGov poll giving him 53% of the vote, has published his manifesto with the title ‘The Economy in 2020’, stating: ‘The big question is how to get some of the wealthiest individuals and biggest corporations to pay anything like their fair share.

 ‘Our tax system has shifted over the last generation from taxing income and wealth to taxing consumption; and from taxing corporations to taxing individuals.’

Corbyn pledges if he becomes Labour leader to introduce a more progressive tax system, ‘ensuring that those with the most pay the most, not just in monetary terms, but proportionally too’.

Other Corbyn policies include the introduction of a ‘proper’ anti-avoidance rule into UK tax law; country-by-country reporting for multinational corporations; reform of small business taxation to discourage avoidance and tackle tax evasion; and enforcing proper regulation of companies in the UK to ensure that they file their accounts and tax returns and pay the taxes that they owe.

Corbyn also says that he would reverse staff cuts at HMRC and Companies House and increase recruitment. Other plans include scrapping university tuition fees and restoring maintenance grants with a 7% rise in National Insurance for anyone earning over £50,000 a year and a 2.5% rise in corporation tax or slowing the pace of deficit reduction, along with large reductions in £93bn of corporate tax relief and subsidies.

In his manifesto, ‘Be part of the change: a radical Labour vision for the 21st century’, Andy Burnham says he plans to replace the current tuition fees system with a new graduate tax and create new university-style support for young people seeking apprenticeships.

Burnham says under him Labour would ‘rebalance’ the tax system, including examining  the case for a Land Value Tax to replace business rates to ensure it supports growth and does not stifle those who are starting up or building their business.

Neither of the other two candidates has published manifestos, but Baker Tilly’s analysis of speeches and other material shows that Yvette Cooper, like Burnham, opposes government moves to limit child tax credits to two children, backs a graduate tax and supports a 50p tax rate.

Cooper has also said she wants to see all publicly funded social care services to pay the living wage, to be funded by closing tax loopholes used by large corporates and the hedge fund industry.

According to Baker Tilly’s analysis, Liz Kendall thinks the party should not support a top rate of tax of 50p on a permanent basis, and she also supports the position of not opposing George Osborne's tax credit cuts.

In addition, Kendall wants to see more power and responsibility given to councils over business rates and opposes the Conservative cut in inheritance tax, saying she would spend the money on a revolution in early years services instead.

 The ballot for the Labour leadership closes at noon on 10 September and the result will be announced on 12 September.

Jeremy Corbyn’s manifesto is here

Andy Burnham’s manifesto is here

Further information about the other leadership candidates is available here Yvette Cooper and Liz Kendall

Sign up to our newsletter

If you would like to receive regular news alerts about breaking news and developments in tax, accounting and audit, sign up to receive our free newsletter www.accountancylive.com/newsletter