Chancellor Philip Hammond is warning that pledges claimed in the Labour party manifesto will create a £58bn black hole
Mr Hammond said planned expenditure by the Labour party would cost £58bn more than the amount they are going to raise.
But Labour’s shadow chief secretary to HM Treasury, Peter Dowd, denied the claim.
Mr Dowd said: "Labour is the only party with a fully costed plan to revive Britain’s economy and close the Conservatives’ never ending budget deficit, while protecting everyone from tax increases on VAT and national insurance contributions, as well as guaranteeing 95 per cent of income taxpayers won’t face income tax rises.”
Labour plans to finance the proposals by raising taxes on large companies and higher earners by £48bn to pay for its programme to increase spending on education, health and other public services.
It also claims re-nationalisation of water, energy companies and the Royal Mail will bring down household bills by £220 a year.
The party claimed axing dividends to shareholders and reducing interest payments on debts will mean cheaper water, gas and electricity for consumers.
stephanie.hawthorne@ft.com
