General Election 2017: Labour to fund £5 billion education boost through corporation tax hike

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The Labour Party will fund increases in education spending by hiking corporation tax under plans to pump almost £5 billion into the country’s school system.

The plans for a National Education Service would see class sizes for five-to-seven-year-olds kept below 30, under plans set out by leader Jeremy Corbyn.

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

The plans will be funded from the £20 billion Labour says will be raised by raising corporation tax from its 19% rate to 26% by 2022 if Mr Corbyn becomes prime minister in the general election.

Labour leader Jeremy Corbyn launched the party's General Election campaign in Manchester
PA

The plans include a real terms increase in funding, estimated to cost £5.66 billion a year by the end of the parliament, with £4.8 billion going to English schools.

All primary school children would also get free school meals, the Labour Party said.

The education maintenance allowance for college students under the proposals would also be restored, which was scrapped in 2010.

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 Conservatives have spent seven years starving schools of funding, meaning headteachers are having to send begging letters to parents to ask for money.

"They have also cut support for students and forced colleges to increase fees. It's created a downward spiral that is bad for the people being held back and bad for the economy."

Labour said that projections under Tory plans would see £44.3 billion of spending on schools in 2022, under Mr Corbyn's plans the figure would be £49.1 billion.

The party has already committed to fund the free school meal plan by imposing VAT on private schools.

The increase in corporation tax to 26% by 2020-21 will still leave it at the lowest rate in the G7, Labour said - although US president Donald Trump has vowed to slash the rate in his country to 15%.

Treasury Chief Secretary David Gauke said: "Jeremy Corbyn can't deliver any of this - they're just made up promises on the back of nonsensical spending plans.

“He's spent this damaging tax rise on businesses on 12 different things and he's already dropped numerous things he's said he'd do before."

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