Labour’s fiscal plan

Our fiscal rules are non-negotiable and will apply to every decision taken by a Labour government. This means that the current budget must move into balance, so that day-to-day costs are met by revenues and debt must be falling as a share of the economy by the fifth year of the forecast.

Costs for Labour’s additional public services spending are set out below. We have used the last year of the most recent Office for Budget Responsibility forecast (2028-29) which represents the highest annual cost of the policies. However, we will begin to put these policies in place from day one of a Labour government, moving as quickly as possible in a way that also ensures value for money for the taxpayer.

We have not allocated all additional revenue to potential spending. This is a prudent approach in line with our commitment to economic stability.

Policies not listed here will be funded from existing budgets or do not have a cost.

Public Services1

REVENUE (2028-29)£MPOLICIES FUNDED (2028-29)£M
Revenue from closing further non-dom tax loopholes and investment in reducing tax avoidance 25,23040,000 more operations, scans and appointments every week1,010
Double the number of NHS CT and MRI scanners250
Dentistry package including 700,000 urgent appointments every year125
Free breakfast clubs in every primary school315
Investment in HMRC to reduce tax avoidance855
Revenue from applying VAT and business rates to private schools1,5106,500 new expert teachers450
Increased teacher and headteacher training270
Delivering work experience and careers advice for all young people85
Early language development in primary schools5
Ofsted reform45
Over 3,000 new nurseries35
Mental health support for every school175
Young Futures Hubs95
Revenue from closing carried interest tax loophole565Recruit 8,500 new mental health staff410
Legal aid for victims of disasters or state-related deaths330
Waive visa costs for non-UK veterans who have served four years or more in the British forces410
Revenue from increasing stamp duty on purchases of residential property by non-UK residents by 1%40Appoint 300 new planning officers20
Barnett consequentials5650
Total7,350Total including Barnett consequentials4,835

1 May not sum due to rounding.

2 Revenue from tax avoidance driven by additional £855m per year investment in HMRC. Does not include £600m revenue from removing non-dom discount loophole in 2025-26.

3 Costs are England and Wales.

4 Costs are UK wide.

5 Scotland (£320m), Wales (£195m), Northern Ireland (£135m).

Green Prosperity Plan6

The Green Prosperity Plan will be funded in part by a time-limited windfall tax on the oil and gas giants making record profits, with the rest of the funding coming from responsible borrowing to invest within Labour’s fiscal rules – catalytic investment that will leverage higher private investment and boost economic growth.

For transparency, we have given an annual average across the parliament given the exact profile of projects will be driven by partnership with business.

(annual average)
£bnPolicies funded (annual average)£bn
Windfall tax on oil and gas giants1.2Great British Energy1.7
National Wealth Fund1.5
British Jobs Bonus70.3
Warm Homes Plan71.1
Barnett consequentials0.2
Total1.2Total including Barnett consequentials4.7
Borrowing to invest within fiscal rules3.5

6 May not sum due to rounding.

7 Elements of the British Jobs Bonus (up to £500m per year from 2026-27) and Warm Homes Plan will be devolved.

Changes within departmental spending plans8

We have identified waste and other efficiencies which will be used to fund further public service priorities.

For transparency, we have used an annual figure that reflects the highest annual costs of these policies given the differing profiles of each spending priority.

within existing departmental plans
Amount re-allocated, annualised, £m
Prioritising frontline public service delivery and public sector capabilityHalving consultancy spend745
13,000 additional neighbourhood police and community PCSOs; and specialist domestic abuse advisers in 999 control rooms at peak timesPolice Efficiency and Collaboration Programme400
New measures to clear the asylum backlog: Caseworkers, Returns and Enforcment UnitEnd use of hotels for asylum accommodation155
Border Security Command to tackle criminal gangs behind small boat crossingsScrap the Rwanda scheme75
Invest in roads maintenance to fill in up to 1 million potholes every yearDeferring the A27 bypass65
Put youth workers in A&E units and custody centres, and youth mentors in pupil referral unitsFull cost recovery for firearms licenses20
Appoint legal advocates to provide free legal advice and support to rape survivors across England and WalesRedirect PCC grants for victims’ services5

8 May not sum due to rounding.