In a day of mayhem for the Labour leader, independent analysts said his spending plans did not add up and that the pound would plunge in value if there is a hung parliament.
Corbyn then announced that Abbott, the shadow home secretary and his most recognisable frontbench colleague, was being replaced “for the period of her ill health” by West Ham parliamentary candidate Lyn Brown. With Labour on the ropes, Theresa May came out fighting with a direct warning to Londoners that Corbyn was planning to treat them as a “cash cow” to fund a spending spree.
In her strongest appeal yet to voters in the capital, the prime minister said the Labour leader was aiming a “tax bombshell” at workers and businesses. “If you live or work in London, Corbyn is going to hit you with higher taxes,” she said.
On the last day of campaigning, Labour was hit by a series of unexpected blows:
* The head of the independent Institute for Fiscal Studies said Labour’s tax and spending plan “absolutely doesn’t add up” due to “errors in their numbers”.
* A leading City analyst warned that sterling will fall unless May wins comfortably, which would make summer family holidays more expensive. “The markets are only prepared for an increased Tory majority,” said Dominic Rossi, of Fidelity International. “Anything else will lead to quite significant moves in the foreign exchange markets.”
* Business leaders and economists warned that jobs will move abroad if Labour implements plans for higher corporate taxes, plus income tax hikes that would be passed to company payrolls.
The Tories said Labour’s borrowing plans would cause mortgages to rise — pushing up payments for typical homeowners by £2,548 a year. In addition, they said Labour would force a million more London homes into the inheritance tax zone.
The Conservatives also claimed Labour would impose a “garden tax” to fund town halls, costing Londoners some £8,662 on average.
May said: “Corbyn will tax you while you work, he’ll tax your garden, and he’ll tax your home when you pass it on to your loved ones. Corbyn sees Londoners as a cash cow to fund his reckless spending pledges — and a vote for the LibDems will help him hit the capital.
“Only a vote for me and my Conservative candidates today will stop this London tax bombshell.”
The announcement that Abbott will play no further role in the election campaign raises the possibility that her career as a senior frontbench politician is coming to an end.
The move followed a series of disastrous performances in TV interviews.
Corbyn told BBC Breakfast that Abbott, 63, who is seeking to retain her seat of Hackney North and Stoke Newington, had not been well for a “couple of days” and was “taking a break from the campaign”.
Labour Party leader Jeremy Corbyn waves to his supporters as he leaves after attending a campaign visit in Colwyn Bay, north Wales, yesterday.