Labour has claimed that Conservative tax pledges will amount to a “reckless £46 billion blackhole” that will leave home buyers worse off.
During the spring Budget Chancellor Jeremy Hunt announced a 2p cut in national insurance and outlined a “long-term ambition” to scrap national insurance contributions altogether.
Labour has said that ending national insurance would cost £46 billion.
Analysis from the party claims that first-home buyers could be £280 worse off each year, if the Government follows through with the “Liz Truss-style” pledge.
Labour has stated that an average first-time buyer spends roughly £1,120 in monthly repayments, and claimed they could see monthly payments soar to £1,403 a month in the event of a large unfunded tax cut.
Shadow Treasury minister Darren Jones accused the Tories of “betraying a generation of young families”.
Mr Jones said: “Safe, secure and affordable housing is the foundation of a good life for families and a strong economy for our country.
“If Rishi Sunak follows through with this unfunded commitment, the Tories will be betraying a generation of young families who want to get on and buy their first home.
“Labour is now the only party that can fix our broken planning system. We will back the builders who want to build more homes and ensure that the next generation will be able to buy their first home like their parents could.”
However, the Conservatives responded saying that Labour is refusing “to end the double tax on work”.
Treasury minister Bim Afolami said: “Labour now oppose making fully-funded tax cuts and ending the double tax on work. They would hike up taxes and take us back to square one.
“Labour must explain why they think people should be taxed twice for work and how they will pay for their £2.7 billion unfunded spending while reducing taxes on working people. The truth is without a plan, taxes will rise and working people will pay.
“Rishi Sunak and the Conservatives are sticking to the plan to cut taxes for 29 million people, putting £900 back in the pockets of the average worker on £35,400 as we continue to make progress on our long-term goal to end the double tax on work.”
