Labour policies equal 3p rise in income tax Analysis suggests that uncosted Labour spending pledges would cost the equivalent of a 3p rise in income tax, with it found that the party’s policies would require an additional £20bn of funding per year. Labour’s biggest recurring spending commitment is to extend free childcare to all children aged 11 and under. The IPPR think-tank estimates the cost at almost £18bn, although when taking into account the Government’s own childcare plans, the net cost would be more like £13.6bn. While Labour disputed that the cost of its policies would need a large rise in income tax, Chancellor Jeremy Hunt tweeted that it is “just not possible for Labour to promise so much extra spending without pushing up taxes, inflation and interest rates.”